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+--- Thread: ACCOR HOTELS AQUIRES FRHI (/thread-912.html)
ACCOR HOTELS AQUIRES FRHI - TEAM HARLFORUM - 07-21-2016
AccorHotels Group has won approval to acquire FRHI Hotels & Resorts (FRHI) and its three hotel brands: Fairmont, Raffles and Swissôtel. It also named Fairmont veteran Chris Cahill as CEO of Luxury Brands.
Cahill, most recently executive vice president of global operations at Las Vegas Sands Corp., will also become a member of AccorHotels’ Executive Committee and lead the FRHI integration process. He will be responsible for the strategy and global operations of AccorHotels Luxury Brands. This new structure will include Raffles, Fairmont, Sofitel Legend, So Sofitel, Sofitel, MGallery by Sofitel, Pullman and Swissôtel.
The FRHI transaction with Qatar Investment Authority (QIA) and Kingdom Holding Company (KHC) of Saudi Arabia provided US$840 million cash payment and the issuance of 46.7 million AccorHotels shares in consideration for the contributed FRHI shares. The transaction gives QIA and KHC respective stakes of 10.4% and 5.8% in Accor’s share capital. Ali Bouzarif and Aziz Aluthman Fakhroo from QIA and Sarmad Zok from KHC will now join AccorHotels’ Board of Directors.
AccorHotels plans to generate approximately €65 million (US$71.8 million) in revenue and cost synergies thanks to the combination of brands, the maximization of hotel earnings, the increased efficiency of marketing, sales and distribution channel initiatives, and the optimization of support costs. Significant enhancements will also be made in terms of customer data, thanks to the integration of FRHI’s customer base that includes three million loyalty members, of which 75% are in North America.
The vast majority of Fairmont, Raffles and Swissôtel’s 154 hotels and resorts (of which 40 are under development) and 56,000 rooms spanning 34 countries and five continents are operated under long-term management contracts, with an average term of nearly 30 years; six hotels are leased and one hotel is owned.