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Fairmont and Raffles to Merge into $5.5 Billion Luxury Hotel Brand
January 30, 2006By: Mary Winston Nicklin
You heard that right, folks. The lovely Fairmont is to be acquired by Kingdom Hotels and Colony Capital. The combo with Singapore-based Raffles creates a new luxury hotel brand with 120 hotels in 24 countries. The dry deets are spelled out in the press release:
Fairmont Hotels & Resorts Inc. ("Fairmont" or the "Company") (TSX/NYSE: FHR) today announced that it has entered into an Acquisition Agreement whereby a Canadian company owned by Kingdom Hotels International ("Kingdom") and Colony Capital ("Colony") will acquire all of Fairmont's outstanding common shares at a price of US$45.00 per share in cash. The total value of this transaction, including debt and the combination with Raffles, is expected to be approximately US$5.5 billion (or US$3.9 billion, without giving effect to the Raffles combination).