PARIS, Dec 9 (Reuters) - AccorHotels, Europe’s largest hotel group, said on Wednesday it reached a deal to buy FRHI Holdings Ltd to boost its position in the luxury hotel market and in North America.
The agreement with Qatar Investment Authority and Kingdom Holding Company of Saudi Arabia provides for a cash payment of $840 million (768 million euros) and the issuance of 46.7 million Accor shares, AccorHotels said in a statement.
This is the latest move in a consolidating hotel industry trying to better compete with apartment-sharing start-ups such as Airbnb, after Marriott International Inc launched a $12 billion takeover of Starwood Hotels & Resorts Worldwide Inc to create the world’s largest hotel group. .
FRHI operates luxury hotel brands Fairmont, Raffles and Swisshotel. (Reporting by Dominique Vidalon; Editing by Leigh Thomas)