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Accor set to 'accelerate' luxury growth after sealing FRHI deal

Shareholders rubber-stamp €768 million plus shares deal for FRHI Hotels & Resorts

Pictured: AccorHotels chairman and CEO Sébastien Bazin says the company is well-placed for luxury growth

AccorHotels has finalised its €768 million (£640m) cash plus shares deal for FRHI Hotels & Resorts (FRHI) and appointed a new CEO to oversee the newly added luxury brands in its portfolio.

The acquisition means Accor now owns the Fairmont, Raffles and Swissôtel brands after shareholders approved the purchase for cash plus 47 million new shares. A total of 56,000 bedrooms across 34 countries have been added to Accor’s portfolio – including The Savoy in London - in the second hotel group mega merger this year, following Marriott’s £9bn deal for Starwood.

AccorHotels has also created a new CEO of luxury brands role. Chris Cahill, formerly of the Las Vegas Sands Corp will be responsible for integration of the newly-acquired brands into a structure that will consist of Raffles, Fairmont, Sofitel Legend, So Sofitel, Sofitel, MGallery by Sofitel, Pullman and Swissôtel.

Sébastien Bazin, AccorHotels chairman and CEO, said the merger puts the group in a good position to accelerate growth of luxury brands. “The acquisition of these three emblematic luxury hotel brands is a historical milestone for AccorHotels,” he said. “It will open up amazing growth prospects, lift our international presence to unprecedented heights, and build value over the long term.

“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.” 

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