Accor accelerates growth of its luxury brand portfolio
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Fairmont Peace Hotel on Shanghai's Bund. The Fairmont brand, together with two others formerly owned by FRHI Hotels & Resorts, has been acquired by AccorHotels Group. Provided to China Daily |
AccorHotels Group has become a leading player in the global luxury hotel market with the acquisition of FRHI Hotels & Resorts and its three hotel brands - Fairmont, Raffles and Swissotel.
Announced last week, the deal is a "historical milestone" for AccorHotels, according to Sebastien Bazin, chairman and chief executive officer of AccorHotels.
Combining FRHI's proven track record and deep expertise in operating and marketing luxury hotels with AccorHotels' robust global operating platform, extensive loyalty base and industry leading digital capabilities the group expects to open up amazing growth prospects.
"By leveraging the operational synergies between FRHI and AccorHotels, we are well-positioned to accelerate the growth of our luxury brands," said Bazin.
"To receive three of the world's most prestigious, luxury hotel brands is a 'once-in-a-lifetime' opportunity," said Michel Molliet, chief operating officer of AccorHotels Greater China.
Molliet said it not only gives the group greater global reach and a more diverse portfolio, but also the benefits of talent, expertise and industry experience.
In support of its larger strategy to strengthen its luxury and upscale business, AccorHotels is establishing luxury brands as new part of its structure.
The company has appointed Chris Cahill, formerly executive vice-president of global operations at Las Vegas Sands Corp, to the newly created role of chief executive officer, luxury brands.
An experienced hotelier who has led several successful integrations and is familiar with multi-brand management, Cahill will lead the FRHI integration process and be responsible for the strategy and global operations of AccorHotels Luxury Brands.
AccorHotels plans to generate approximately 65 million euros ($72.25 million) in revenue and cost synergies thanks to the new structure that includes Raffles, Fairmont, Sofitel Legend, So Sofitel, Sofitel, MGallery by Sofitel, Pullman and Swissotel.
The vast majority of Fairmont, Raffles and Swissotel's 154 hotels and resorts (40 of which are under development) in 34 countries are operated under long-term management contracts, with an average term of nearly 30 years; six hotels are leased and one hotel is owned.
Benefiting from dual expertise as an investor and operator, AccorHotels is a leading travel and lifestyle group and digital innovator operating in 95 countries.
As well as its latest acquisitions, the group also includes the midscale and boutique brands of Novotel, Mercure, Mama Shelter and Adagio, and the economy brands including ibis, ibis Styles, ibis budget and the regional brands Grand Mercure, The Sebel and hotelF1.
With a rich history spanning close to five decades, AccorHotels is active in its local communities and committed to sustainable development and solidarity through PLANET 21, a comprehensive program that brings together employees, guests and partners to drive sustainable growth.
Accor SA is a publicly listed company with shares trading on the Euronext Paris exchange and the OTC marketplace in the United States.
lindsayandrews@chinadaily.com.cn
(China Daily 07/23/2016 page10)
