Paris-based hotel group AccorHotels is buying FRHI Holdings, owner of the Savoy in London and the Plaza in New York.
Accor is paying for the company, which owns the Fairmont, Raffles and Swissotel chains, by issuing 46.7m new Accor shares and making a cash payment of $840m (£553m). The group is selling a 10.5 per cent stake to Qatar Investment Authority and a 5.8 per cent stake to Kingdom Holding Company of Saudi Arabia.
FRHI owns 155 hotels and resorts around the world, with more than 45,000 employees working for its brands.
Accor said the acquisition will “strategically enhance” its brand portfolio, as well as providing the firm with a “better-balanced business portfolio”.
Sebastien Bazin, chairman and chief exec at Accor, said: “The transaction will also enable the group to consolidate its shareholder base, with the arrival of two high-profile investors that both have extensive expertise in the hospitality industry. “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.”
Accor is already the owner of the Ibis, Mercure and Sofitel brands, among others.