Accor Hotels has added the Fairmont, Raffles and Swissôtel luxury brands to its portfolio after completing the takeover of FRHI Hotels & Resorts (FRHI). The sellers, Qatar Investment Authority and Kingdom Holding Company from South Arabia, received €768m as well as a 46.7 million share package for the brands. The chain amounts to 155 hotels, 40 of which are currently under construction, totaling 56,000 rooms.
The hotel operator said the move gave Accor a leading position in the luxury sector, while providing long-term growth potential to the company, both in terms of size and profitability. The deal has also reportedly helped Accor to establish itself in South America, one of the most developed consumer markets worldwide. Chris Cahill will head the new luxury division, while overseeing the integration process of the companies. In all, his new division will include the Raffles, Fairmont, Sofitel Legend, So Sofitel, Sofitel, MGallery by Sofitel, Pullman and Swissôtel brands.
