AccorHotels Completes Acquisition of FRHI
PHOTO: Rendering of Raffles Istanbul. (Photo courtesy of FRHI Hotels & Resorts).
More than seven months after agreeing to acquire FRHI Hotels & Resorts for $2.9 billion, AccorHotels recently won shareholder approval to complete the acquisition.
FRHI (Fairmont Raffles Hotels International) operates the Fairmont, Raffles and Swissotel luxury hotel brands comprising 115 existing hotels and resorts around the world with 40 more properties currently under development.
"The acquisition of these three emblematic luxury hotel brands is a historical milestone for AccorHotels," said the company's chairman and CEO Sebastien Bazin in a statement. "It will open up amazing growth prospects, lift our international presence to unprecedented heights, and build value over the long term."
In wake of the finalized acquisition, AccorHotels has named former FRHI president Chris Cahill as CEO of luxury brands.
AccorHotels' new structure of luxury brands will comprise Raffles, Fairmont, Sofitel Legend, So Sofitel, Sofitel, MGallery by Sofitel, Pullman and Swissotel.
In his new role, Cahill will lead the FRHI integration process.
In an emailed letter to guests Tuesday, Bazin said "the Fairmont collection boasts some of the most iconic and distinctive hotels in the world, and we see this as an unparalleled opportunity to offer you even more of what you love about Fairmont."
"As your business is important to us, we wanted you to be among the first to hear this exciting news and to let you know that upcoming reservations remain unchanged, as do the services and benefits you have come to expect when staying with Fairmont," added Bazin.
Moving forward, AccorHotels expects to generate approximately $72 million in revenue and cost synergies through combining brands, maximizing hotel earnings, increasing marketing and sales efficiency and optimizing support costs, among other things.
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