Accor buys Savoy and Raffles group for £1.9bn

AccorHotels has snapped up the FRHI Hotels & Resorts’ Fairmont, Raffles and Swissôtel brands for £1.9bn.

FRHI hotels include famous properties such as Raffles Singapore and The Savoy in London, and Accor says the acquisition could help generate around €65m (£47m) in revenue and ‘cost synergies’. His Excellency Sheikh Abdulla Bin Mohammed Bin Saud Al-Thani, CEO of the Qatar Investment Authority added that the deal generates the scale required to drive forward further investment.

Accor has announced it is to pay for the purchase of FRHI with a combination of £550 million cash and 47 million new shares. The Qatar Investment Authority and Kingdom Holding Company of Saudi Arabia have become major shareholders with a 10 per cent and 6 per cent stake respectively.

AccorHotels CEO and chairman Sébastien Bazin said: “This is an outstanding opportunity to add three prestigious brands – Fairmont, Raffles and Swissôtel – to our portfolio, and a great step forward for AccorHotels. It offers us robust and global leadership in luxury hotels, a key segment in terms of geographic reach, growth potential and profitability, for long term value creation. This major acquisition demonstrates the Group’s agility in a fast-changing industry and will allow us to more effectively support our guests, clients and hotel owners. Through it, we are positioning ourselves as a key player in the current industry consolidation process while maintaining substantial leeway to implement our transformation plan.”

The deal comes in the wake of last month’s £8bn deal by Marriott for Starwood’s collection.

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