AccorHotels Group has officially announced the acquisition of FRHI Hotels & Resorts (FRHI) and its three luxury hotel brands: Fairmont, Raffles and Swissôtel.
This addition of three brands expands the company’s footprint in North America, the world’s largest consumer market. Joining AccorHotels’ network is a portfolio of properties such as The Savoy in London, Raffles Singapore, Fairmont San Francisco, New York’s The Plaza, Fairmont Le Château Frontenac in Quebec City, and Le Royal Monceau Raffles Paris. The Fairmont, Raffles and Swissôtel brands employ more than 45,000 colleagues worldwide.
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.
AccorHotels plans to generate approximately €65 million in revenue and cost synergies thanks to the combination of brands, the maximixation of hotel earnings, the increased efficiency of marketing, sales and distribution channel initiatives, and the optimization of support costs.
Sébastien Bazin, chairman and chief executive officer of AccorHotels, said: “Today is a great day for our Group. The acquisition of these three emblematic luxury hotel brands is a historical milestone for AccorHotels. It will open up amazing growth prospects, lift our international presence to unprecedented heights, and build value over the long term.”
“By leveraging the operational synergies between FRHI and AccorHotels, we are well-positioned to accelerate the growth of our luxury brands and offer guests even more exciting hotel choices and destinations to explore.
“We remain committed to providing guests with unparalleled service, while also keeping the ambition to deliver exceptional return on investment for our shareholders and hotel owners,” added Bazin.