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-   -   Accor buys FRHI Holdings (Fairmont, Raffles and Swiss˘tel) (https://www.flyertalk.com/forum/accor-all-accor-live-limitless/1730281-accor-buys-frhi-holdings-fairmont-raffles-swissotel.html)

starflyergold Dec 11, 15 3:06 am


Originally Posted by RJ77 (Post 25847869)
I think Swissotel as a brand can go and the properties absorbed by Pullman. Fairmont and Raffles can remain. :)

Agreed, I don't think it has much brand recognition. The only time I noticed it was when I stayed at the Sofitel Kurfuerstendam and I was looking straight at it. :D

RJ77 Dec 11, 15 3:40 am


Originally Posted by dcstudent (Post 25842995)
I'm nervous about the lovely Fairmont's in Canada that I love so much. Namely, Lake Louise, Banff and Le Manoir Richelieu. Lovely hotels, with amazing staff in beautiful places. Just doesn't seem like the sort of places Accor would have much interest in.

Guess I'll have to wait and see!

In my mind, these Canadian properties define the Fairmont brand.

iflyjetz Dec 11, 15 6:12 am


Originally Posted by stimpy (Post 25845376)
What liquidity pressures? They've bought some iconic hotels this year and show no sign of slowing down. The LNG hasn't run out, has it?

You don't follow commodity prices? Nat gas prices have fallen through the floor. Qatar has its first account deficit in 15 years.

Kingdom Holding Company is heavily committed financially to Kingdom Tower construction which started in 2013(?). Supposed to be the largest tower built but isn't going to be finished until 2019 so no revenue until completion. Plus there's a ton of planned expenditure for developing the surrounding area.

macabresg Dec 11, 15 6:15 am

Looking forward to staying in Raffles Hotel Singapore under Accor and will be overjoyed if Accor Plus stay benefits can be applied in this hotel!

stimpy Dec 11, 15 7:04 am


Originally Posted by RJ77 (Post 25847853)
I think it was the Westin.

I think you are right.

Oh, and I just remembered another Fairmont that I really like. The one on Sheik Zayed road in Dubai. Solid property.

And my first Swisshotel stay was in the mid-90's in Beijing. I recall it having the only restaurant in mainland China that had a European (Swiss of course) chef at the time. :)

stimpy Dec 11, 15 7:09 am


Originally Posted by iflyjetz (Post 25848371)
You don't follow commodity prices? Nat gas prices have fallen through the floor. Qatar has its first account deficit in 15 years.

Kingdom Holding Company is heavily committed financially to Kingdom Tower construction which started in 2013(?). Supposed to be the largest tower built but isn't going to be finished until 2019 so no revenue until completion. Plus there's a ton of planned expenditure for developing the surrounding area.

Doesn't Qatar has something like 100 more years of gas production? I think they can survive a temporary dip in prices. And again, they don't seem to be stopping investment in the hotel and travel business.

RJ77 Dec 11, 15 7:47 am


Originally Posted by stimpy (Post 25848518)
And my first Swisshotel stay was in the mid-90's in Beijing. I recall it having the only restaurant in mainland China that had a European (Swiss of course) chef at the time. :)

First time in China in the mid-90's as well. Couldn't remember where I stayed (it was tour group), but all I could remember was the big KFC in Shanghai occupying the building of what is now Waldorf Astoria hotel.

iflyjetz Dec 11, 15 3:41 pm


Originally Posted by stimpy (Post 25848529)
Doesn't Qatar has something like 100 more years of gas production? I think they can survive a temporary dip in prices. And again, they don't seem to be stopping investment in the hotel and travel business.

With the shift toward renewables, their nat gas supply could be infinite. Nat gas is trading at a 10 year low.

Qatar's also got a lot of construction expenses due to the 2022 FIFA World Cup. The last estimates I've seen are a bit north of $200 billion.

However, I think that Qatar's partner in FRHI, Kingdom Holding Company, was the main reason for the sale. I think they've bitten off more than they can chew with the Kingdom Tower project.

RJ77 Dec 12, 15 2:29 am


Originally Posted by iflyjetz (Post 25851008)
However, I think that Qatar's partner in FRHI, Kingdom Holding Company, was the main reason for the sale. I think they've bitten off more than they can chew with the Kingdom Tower project.

It is a good deal, albeit a small one, for the Middle East shareholders as they get to hold about 15% of Accor shares and some cash in return, riding the growth of Asian hospitality market, of which Accor has done a good job of capturing it in mid/low level sectors that would otherwise take the Fairmont group a long time to achieve. I mean reading from the thread posted by the OP, we can infer that FRHI only generates 65 mil Euros a year in revenues. It's not a lot.

starflyergold Dec 12, 15 7:59 am

I have added a small wiki above with the key information on what we know so far about the deal and the hotels involved.

Goldorak Dec 12, 15 11:07 am


Originally Posted by starflyergold (Post 25853186)
I have added a small wiki above with the key information on what we know so far about the deal and the hotels involved.

Thank you for this not-so-small and very informative wiki ^

starflyergold Dec 15, 15 12:52 am

Interesting interview in Hotels Magazine with Kingdom Holding about the sale indicating growth potential for the Fairmont brand and the integration of Swiss˘tel (requires free registration) http://www.hotelsmag.com/Industry/News/Details/63231

gilbertaue Dec 15, 15 2:06 am

This might be a good time to drop this image here...

https://farm1.staticflickr.com/593/2...a416c1f6_z.jpg

starflyergold Dec 15, 15 2:26 am


Originally Posted by gilbertaue (Post 25866090)
This might be a good time to drop this image here...

https://farm1.staticflickr.com/593/2...a416c1f6_z.jpg

Here but not the Fairmont forum :D

gilbertaue Dec 15, 15 2:27 am


Originally Posted by starflyergold (Post 25866136)
Here but not the Fairmont forum :D

Ahhh.... that pleasure can be all yours :cool:

#perhapsjustalinkbacktohere??


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