PARIS—Continuing the wave of consolidation in the lodging sector, AccorHotels said Wednesday it would acquire FRHI Holdings Ltd., parent of the Fairmont, Raffles and Swissôtel brands, from a partnership of the Qatar Investment Authority, Kingdom Holding Co. and Oxford Properties. The cash-and-stock deal is valued at US$2.9 billion.

"This major acquisition demonstrates the group's agility in a fast-changing industry and will allow us to more effectively support our guests, clients and hotel owners," says Sébastien Bazin, chairman and CEO of AccorHotels. "Through it, we are positioning ourselves as a key player in the current industry consolidation process while maintaining substantial leeway to implement our transformation plan."

Toronto-based FRHI operates 155 hotel and resort properties, including 40 under development. Its portfolio includes the Savoy in London, Shanghai's Fairmont Peace Hotel, the Plaza Hotel in New York City, the Fairmont San Francisco Fairmont Le Château Frontenac in Quebec, the Fairmont Grand Del Mar in San Diego, and Swissôtel the Stamford in Singapore.

In all, 42 of FRHI's hotels are located in North America, two in South America, 26 in Europe, 17 in Africa/Middle East and 28 in Asia-Pacific. Most are operated under very long-term management contracts, with remaining terms averaging nearly 30 years; six hotels are leased and one is owned.

Since QIA took an $847-million stake in 2010, "Fairmont Raffles Hotels International has become a leading luxury hotel company with an expanded international presence," says Sheikh Abdulla Bin Mohammed Bin Saud Al-Thani, CEO of QIA. "This deal generates the scale needed to drive the next phase of growth in our real estate and hospitality investments. QIA has confidence in AccorHotels and looks forward to becoming a significant shareholder."

Accor will pay US$840 million in cash and issue 46.7 million shares to acquire FRHI. The transaction will give QIA and KHC respective stakes of 10.5% and 5.8% in the hotelier. Two representatives of QIA and one representative of KHC will be appointed to Accor's board of directors.

The deal is subject to approval by antitrust regulators. Rothschild and Zaoui & Co. are acting as financial advisors and Darrois Villey Maillot Brochier and Proskauer Rose LLP are acting as legal advisors to Accor on this transaction. For FRHI, Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC are acting as financial advisors, while McCarthy Tetrault LLP and White & Case LLP are acting as legal advisors.