$3 Billion Hotel Transaction
CBJ — French hotel chain Accor is buying Fairmont Raffles Hotels International for about $3 billion U.S.
FRHI is being purchased by Accor from joint owners Qatar Investment Authority; King Holding Co., which is the private investment arm of Saudi Prince Alwaleed Bin Talal; and Oxford Properties Group, the real estate division of OMERS, Ontario’s municipal workers pension plan. QIA and King Holding will each retain minority stakes in the new company, while Oxford will not.
“Fairmont Raffles Hotels International has become a leading luxury hotel company with an expanded international presence,” QIA CEO Sheikh Abdulla Bin Mohammed Bin Saud Al-Thani said in a media release. “This deal generates the scale needed to drive the next phase of growth in our real estate and hospitality investments. QIA has confidence in AccorHotels and looks forward to becoming a significant shareholder.”
Accor currently owns 3,800 hotels across 92 countries worldwide under the brand names Ibis, Sofitel, Novotel and others.
The three acquired companies own 155 hotels and resorts and more than 56,000 rooms worldwide. Among the Canadian hotels in the deal include: Fairmont Royal York Hotel in Toronto (pictured), Fairmont Banff Springs,Chateau Lake Louise,Fairmont Le Château Frontenac in Quebec City,Chateau Laurier in Ottawa and the Queen Elizabeth in Montreal.