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Accor buys FRHI Holdings (Fairmont, Raffles and Swiss˘tel)

Accor buys FRHI Holdings (Fairmont, Raffles and Swiss˘tel)

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Old Dec 11, 17, 7:22 pm   -   Wikipost
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What we know:

On 9 December 2015 Accorhotels announced an agreement with the Qatar Investment Authority (QIA), Kingdom Holding Company (KHC) of Saudi Arabia and Oxford Properties, an Ontario Municipal Employees Retirement System (OMERS) company for the acquisition of FRHI Holdings Ltd (FRHI), parent of Fairmont, Raffles, and Swiss˘tel. Accorhotels will be paying $840 million in cash and by issuing 46.7 million new shares. As part of the transaction, QIA will have two seats on Accorĺs board while KHC will take another.

FRHI?
FRHI is the holding company for the Fairmont, Raffles, and Swiss˘tel brands. FRHI is a management company and the portfolio is almost exclusively on long-term management contracts; i.e. this does not include the brick and mortar in most cases but long term leases of the hotels concerned. 155 hotels are included in the deal and 40 developments which equates to 56,000 rooms in total.

Fairmont
Fairmont Hotels & Resorts is a Canadian-based operator of hotels and resorts. Currently, Fairmont operates properties in 19 countries.
Canada: Banff, Calgary, Charlevoix, Edmonton, Jasper, Lake Louise, Mont Tremblant, Montebello, Montreal, Ottawa, QuÚbec City, Toronto, Vancouver (4), Victoria, Whistler, Winnipeg
United States: Berkeley, Boston, Chicago, Dallas, Hawaii, Maui, New York, Newport Beach, Pittsburgh, San Diego, San Francisco (2), San Jose, Santa Monica, Scottsdale, Seattle, Sonoma, Telluride, Washington DC
Asia: Bali, Beijing, Jaipur, Jakarta, Kunshan, Manila, Nanjing, Shanghai, Singapore
Europe: Baku, Barcelona, Hamburg, Kiev, London, Monte Carlo, Montreux, St Andrews
Mexico, Caribbean and Bermuda: Barbados, Hamilton, Riviera Maya, Southampton
Middle East and Africa: Abu Dhabi, Ajman, Cairo (3), Dubai (2), Makkah, Masai Mara, Mount Kenya, Nairobi, Zimbali (2)
In Development: Amman (2015), Austin (2017), Chengdu (2015), Fujairah (2015), Istanbul (2016), Lagos (2016), Moscow (2016), Riyadh (2015), Sharm el Sheikh (2015), Soma Bay (2020), Suzhou (2018), Taiyuan (2016), Zhengzhou (2018).

Fairmont has its own Flyertalk forum. It's current loyalty programme is called President's Club. The programme also covers Raffles and Swiss˘tel though the latter also operates its own loyalty programme.

Raffles
Raffles was established in 1887 in Singapore and currently comprises 12 luxury hotels with 4 in development.
Asia: Beijing, Hainan, Jakarta, Manila, Phnom Penh, Siem Reap, Singapore,
Europe: Istanbul, Paris,
Middle East and Africa: Dubai, Makkah, Praslin,
In Development: Jeddah (2018), Sharm el-Sheikh (2019), Shenzhen (2019), Warsaw (2017)

Swiss˘tel
Swiss˘tel was founded in 1980 as a joint venture between Swissair and NestlÚ and currently includes 37 properties in 17 countries.
Australia: Sydney
Asia: Beijing, Foshan, Kunshan, Shanghai, Kolkata, Osaka, Singapore (2), Bangkok (2), Phuket
Europe: Tallinn, Berlin, Bremen, Dresden, DŘsseldorf-Neuss, Amsterdam, Moscow, Sochi, Basel, Geneva (2), Zurich, Ankara, Bodrum (2), Istanbul (2), Izmir
Latin America: Quito, Lima,
United States: Chicago
Middle East: Makkah
In Development: Dhaka (2017), Sofia (2018), Changsha (2016), Chengdu (2016), Hangzhou (2019), Jinan (2020), Guayaquil (2017), Cairo (2020), Sharm el Sheikh (2016), Bali (2017), Jeddah (2017), Dubai (2018).

Swiss˘tel operates its own loyalty programme called Swiss˘tel Circle. This and Swiss˘tel hotels are currently being discussed in the Other Hotel Chains forum.

What happens next?
On 26 April 2016 Accor announced that it has received antitrust clearance for the purchase in relevant jurisdictions. The next step with be an extraordinary shareholders meeting (to be held on the 12th July 2016) to approve the capital increase and proposed board composition.

The deal closed on 12 July 2016. Nothing from a loyalty perspective will change immediately and the respective programmes and hotels will continue to operate as before.

FRHI inventory was loaded onto the Accor system on 12 July 2016, however none of the hotels will earn any points or can be used to redeem them. At the shareholder meeting Accor seemed to indicate that it will take 18 months for the loyalty aspects to be sorted. However it was clear that Le Club will be the future loyalty programme for all hotels.

Loyalty Integration
As of 2 July 2018 the Fairmont President's Club will cease to exist (the same goes for the Swissotel Circle). Both programmes will be folded into Le Club Accorhotels.

What does this mean for Le Club members? You will be able to earn and redeem points, and receive status related perks at all former FRHI hotels. This includes: early/late check in, welcome drink, upgrade (subject to availability), welcome amenity, free wifi. Lounge access for Platinum members will apply to Swissotel (where available) but does not include the Fairmont Gold Service (unless of course booked, including with points). Any stays at former FRHI hotels from January will contribute to your "night count" but no points will be accrued until 2 July.

What does this mean to FPC members? Members will be transferred into Le Club in July. Platinum members will become Le Club Platinum members, Premier will be Silver, Club will be standard members. The "nights stayed" count will transfer to Le Club in July and contribute to status in Le Club. However points will only accrue from July. Suite certificates can be used up beyond July.
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Old Oct 28, 17, 6:48 am
  #301  
Moderator, Turkish Airlines Miles&Smiles & Le Club Accorhotels
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Originally Posted by .flyer View Post
It's too bad I can't put starflyergold on my ignore list as he started some useful sticky threads.
You are too kind.
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Old Oct 29, 17, 2:46 pm
  #302  
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Originally Posted by .flyer View Post
Jo & Joe, ibis budget and Hotel F1 don't make sense in a full-blown loyalty program (why grant loyalty benefits to customers who only care about the price?)
If I stay in an Ibis or Ibis Budget hotel it isn't necessarily because I only care about price. It's more likely to be because all the hotels in a particular location are operating in that price category. In which case Accor might benefit from giving me a reason to choose their property over a Travelodge or Premier Inn.

Meanwhile, back in the world of things that happen more often, I'm still choosing non-Accor hotels over Fairmonts because of the lack of integration.
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Old Oct 30, 17, 2:50 am
  #303  
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Originally Posted by IMH View Post
If I stay in an Ibis or Ibis Budget hotel it isn't necessarily because I only care about price.
ibis is part of LCAH, ibis budget is not. They serve different market segments. ibis is frequently ~50% more expensive than a nearby ibis budget.

It's more likely to be because all the hotels in a particular location are operating in that price category. In which case Accor might benefit from giving me a reason to choose their property over a Travelodge or Premier Inn.
I disagree. If in a location you have only lowest-budget economy hotels, there's a reason for that. Usually, the reason is that all but a few customers only care about price (and a basic level of cleanliness). It doesn't make sense to expend the resources so that you can take care of the few and far between status customers. (And even if you did, those few status customers may be highly budget-concious as well. They may happily take the status benefits but don't show you any loyalty if the budget motel across the street is slightly cheaper.....)

So, I don't think your point changes my argument at all. To me, it seems unworldly to complain that Accor's lowest-cost brands don't participate in LCAH.

Last edited by 1flyer; Oct 30, 17 at 3:18 am
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Old Oct 30, 17, 5:29 am
  #304  
 
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I personally don't stay at anything lower than a Mercure. Sometimes on the very odd occasion i might only be able to stay in an Ibis as its the only option for over 50kms. Maybe my standards are too high? One thing Accor needs in Asia especially is more spread of mid level hotels (grand mercure/novotel or mercure) in places like China to cover more cities which may have still over a million residents. And it would be lovely if they added a couple more options in places like Korea (less so), Japan (definitely lacking),Philippines (Only has 2 hotels in Manila for the whole country) and Taiwan (has only 1 hotel).

If ibis budget is the only Accor hotel within 20/30kms then they could offer 1 or 2 rooms (very limited number) with more facilities that could include status points but also would be 30-50% more expensive. The room you cannot upgrade to from lower rooms but it would allow welcome drinks (cans of soda or beer). Now it would depend if it would ruin the ibis budget model. But I could understand some small towns in Europe may only have an Ibis budget.
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Old Dec 11, 17, 11:04 am
  #305  
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Change is coming

Word has it that tomorrow will see an announcement on some merger related loyalty programme changes.
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Old Dec 12, 17, 9:35 am
  #306  
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As we are moving to the next phase, the integration of the FPC and Circle programmes, I have moved integration related posts to a new thread: https://www.flyertalk.com/forum/acco...corhotels.html
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