has acquired FRHIHotels and Resorts and its three luxury brands, namely Fairmont, Raffles andSwissôtel after its shareholders gave their approval at a meeting held July 12.
AccorHotelsnamed Chris Cahill, who most recently worked at , to the newlycreated role of CEO, luxury brands to lead the integration process.
Cahillwill be responsible for the strategy and global operations of the hotelier'sluxury brands. A hospitality industry veteran, Cahill will also become a memberof AccorHotels' executive committee. At Las Vegas Sands, he was executive vicepresident, global operations.
Theacquisition "significantly expands the company's footprint in NorthAmerica," AccorHotels said in a news release.
Thedeal was announced in December2015 whereby the French hotel group agreed to acquire FRHI fromQatar Investment Authority, or QIA, Kingdom Holding Co. of Saudi Arabia andOxford Properties Group. The acquisition represented a total consideration ofapproximately €2.58 billion based on the group's share price at the time.
Accordingto a meeting presentation, 32% of the deal value will be paid through an $840million cash payment, and the remaining 68% will be paid in new AccorHotelsshares.
AccorHotelswill acquire 1,718,134 FRHI shares held by QIA, Kingdom Holding and OMERS, inexchange for approximately 46.7 million new AccorHotels shares based on 33.48AccorHotels shares for 1 FRHI class A share.
QIAand Kingdom Holding will now own a 10.4% and 5.8% stake in AccorHotels,respectively, the group said in a news release.
AccorHotelshad announced the clearance of all antitrust approvals for the acquisition in April.
AliBouzarif and Aziz Aluthman Fakhroo from QIA and Kingdom Holding's Sarmad Zokwill join AccorHotels' board of directors. Further, Jiang Qiong Er, IsabelleSimon and Natacha Valla were appointed independent directors.
Thegroup also said it intends to generate approximately €65 million in revenue andcost synergies. The three hotel brands have 154 hotels and resorts in 34countries, of which 40 properties are under development.
Meanwhile,Reuters reported that AccorHotels CEO Sebastien Bazin told shareholders thattalks with Jin Jiang are still ongoing regarding the Chinese company'sintention to increase its stake in the hotelier to 29%.