AccorHotels has received approval from all relevant international regulators to proceed with its US$2.9 billion acquisition of FRHI Holdings.
The acquisition puts an additional 155 hotels and resorts, 40 of which are in development, under AccorHotels' portfolio including the Fairmont, Swissotel and Raffles brands.
AccorHotels will gain a stronger foothold in the USA as a result of the deal and become one of the most significant global players in the luxury accommodation market with nearly 500 properties.
The company will now seek shareholder approval for a capital increase and to appoint new board members from acquisition partners Qatar Investment Authority and Kingdom Holding. The deal is projected to be finalised by mid 2016.
AccorHotels has been bolstering its presence in the luxury accommodation market recently with the FRHI deal following its April acquisition of upscale home share supplier Onefinestay.
Accor Chief Executive Officer Sebastien Bazin said the US$168 million Onefinestay deal gave AccorHotels a product that traditional hotels and other shared economy players could not match.
The deals are the latest in a series of large scale acquisitions in the international hotel sector, including Marriot's recent $12 billion takeover of Starwood Hotels and Resorts which created the world's largest hotel group.