In late 2016, AccorHotels increased its collection of luxury properties by buying Fairmont Raffles Hotels International (FRHI), owner of the luxury Raffles, Fairmont and Swissotel brands, for US$2.9 billion.
The French hotel giant is now expanding this luxury segment with the announcement on April 30 that it has signed an agreement with Mövenpick Holding and Saudi conglomerate Kingdom Holding Company to acquire Mövenpick Hotels & Resorts for US$567 million (560 million Swiss francs/€482 million) cash.
This latest acquisition is part of the French hotel giant's ongoing takeover strategy, which saw it purchasing in early April a 50% stake in Mantis Group, the South Africa-based hospitality and travel conglomerate.
The deal would add to group earnings from the first year, said AccorHotels, and it expects it to be completed in the second half of 2018.
"With the acquisition of Mövenpick we are consolidating our leadership in the European market and are further accelerating our growth in emerging markets, in particular in Middle East, Africa and Asia-Pacific," AccorHotels chairman and CEO Sébastien Bazin said in a statement.
Founded in 1973 in Switzerland, Mövenpick Hotels & Resorts operates in 27 countries with 84 hotels comprising more than 20,000 rooms and has a strong presence in Europe and the Middle East. It also plans to open 42 additional hotels by 2021 (about 11,000 rooms) in the Middle East, Africa and Asia Pacific.
"The Mövenpick brand is the perfect combination of modernity and authenticity and ideally complements our portfolio. Its European-Swiss heritage is a perfect fit with AccorHotels. By joining the Group, it will benefit from AccorHotels' power particularly in terms of distribution, loyalty-building and development," added Bazin.
"This transaction illustrates the strategy we intend to pursue with the opening up of AccorInvest's capital to seize tactical opportunities to strengthen our positions and consolidate our leaderships, as well as leverage our growth."
In February AccorHotels sold a 55% stake in its AccorInvest real estate for 4.4 billion euros (US$5.4 billion) cash, and it said then it would use the proceeds from the sale to fuel its expansion.
Photo credit: The spectacular Mövenpick Ibn Battuta Gate Hotel Dubai