Dec 12, 2015, 4:13 am
Last edit by: starflyergold
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 Swissôtel. 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 Accor’s board while KHC will take another.
FRHI?
FRHI is the holding company for the Fairmont, Raffles, and Swissôtel 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, Québec 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 Swissôtel 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)
Swissôtel
Swissôtel was founded in 1980 as a joint venture between Swissair and Nestlé 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, Düsseldorf-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).
Swissôtel operates its own loyalty programme called Swissôtel Circle. This and Swissôtel 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.
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 Swissôtel. 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 Accor’s board while KHC will take another.
FRHI?
FRHI is the holding company for the Fairmont, Raffles, and Swissôtel 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, Québec 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 Swissôtel 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)
Swissôtel
Swissôtel was founded in 1980 as a joint venture between Swissair and Nestlé 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, Düsseldorf-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).
Swissôtel operates its own loyalty programme called Swissôtel Circle. This and Swissôtel 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.
Accor buys FRHI Holdings (Fairmont, Raffles and Swissôtel)
Dec 11, 2015, 3:06 am
#46
Moderator, Turkish Airlines Miles&Smiles & Accor ALL
Join Date: Apr 2009
Location: BRU
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Posts: 7,586
Dec 11, 2015, 3:40 am
#47
Join Date: Feb 2011
Location: Asia
Programs: Krisflyer, Enrich, Marco Polo, Accor, HHonors, IHG
Posts: 610
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!
Guess I'll have to wait and see!
Dec 11, 2015, 6:12 am
#48
Join Date: Jul 2001
Programs: Marriott LT Tit; Hyatt Explorist; Hilton CC Gold; IHG CC Plt; Hertz (MR) 5 star
Posts: 5,536
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.
Dec 11, 2015, 6:15 am
#49
Join Date: Apr 2015
Location: SIN
Programs: HH Diamond, Marriott Platinum, IHG Platinum, QR Gold, KrisFlyer Elite Gold
Posts: 96
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!
Dec 11, 2015, 7:04 am
#50
FlyerTalk Evangelist
Join Date: Feb 1999
Location: Seat 1A, Juice pretty much everywhere, Mucci des Coins Exotiques
Posts: 34,339
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.
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.
Dec 11, 2015, 7:09 am
#51
FlyerTalk Evangelist
Join Date: Feb 1999
Location: Seat 1A, Juice pretty much everywhere, Mucci des Coins Exotiques
Posts: 34,339
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.
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.
Dec 11, 2015, 7:47 am
#52
Join Date: Feb 2011
Location: Asia
Programs: Krisflyer, Enrich, Marco Polo, Accor, HHonors, IHG
Posts: 610
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.
Dec 11, 2015, 3:41 pm
#53
Join Date: Jul 2001
Programs: Marriott LT Tit; Hyatt Explorist; Hilton CC Gold; IHG CC Plt; Hertz (MR) 5 star
Posts: 5,536
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.
Dec 12, 2015, 2:29 am
#54
Join Date: Feb 2011
Location: Asia
Programs: Krisflyer, Enrich, Marco Polo, Accor, HHonors, IHG
Posts: 610
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.
Dec 12, 2015, 11:07 am
#56
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Dec 15, 2015, 12:52 am
#57
Moderator, Turkish Airlines Miles&Smiles & Accor ALL
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Interesting interview in Hotels Magazine with Kingdom Holding about the sale indicating growth potential for the Fairmont brand and the integration of Swissôtel (requires free registration) http://www.hotelsmag.com/Industry/News/Details/63231
