AccorHotels and Rixos announce major partnership
AccorHotels will own a 50% interest in the joint venture management company upon closing, giving Accor control over 15 Rixos properties
The move illustrates AccorHotels’ strategy to expand its presence in the upper upscale/luxury market, the French-based hotelier said.
In 2016, Accor had bought Fairmont and Raffles Hoteles (FRHI) in a deal that was worth $3.2 billion giving Accor presence in the luxury and upscale segments.
Under the long-term joint venture, both parties (Accor and Rixos) intend to collaborate, develop and manage Rixos branded resorts & hotels worldwide.
Upon closing, AccorHotels will own a 50% interest in the joint venture management company.
Through this joint venture, AccorHotels will integrate 15 hotels that are ideally located in premium resort markets in Turkey, UAE, Egypt, Russia and Europe and which benefit from strong room rate performance in its network.
As part of this transaction, Rixos will reflag five city-centre hotels to AccorHotels brands which will also be managed by AccorHotels.
To this portfolio, Rixos will add a second hotel in Dubai in the very short term as well as two other properties by the end of 2018 in Abu Dhabi and the Maldives, highlighting the expansion of the Rixos brand into this key resort market.
Rixos is one of only a handful resort brands in the region and includes assets such as Rixos Premium Belek in Turkey and Rixos The Palm in Dubai.
Additionally, Rixos has invested in Turkey's largest life and entertainment centre, The Land of Legends Theme Park, which opened its gates in the country's tourism capital Antalya in July 2016. The joint venture will also manage the hotel within the entertainment park.
Rixos founder and chairman Fettah Tamince said: “Our collaboration is part of Rixos’ objective for further expansion and growth globally with a strong partner in the hospitality industry. Combined with our partner’s strong brand portfolio, reservation and sales network supported by a wide range of digital marketing activities, Rixos will expand its current geographic footprint and customer base.
“It is also a great opportunity for our customers to benefit from our participation in Le Club AccorHotels, which is recognised as one of the most powerful loyalty programs in the industry with over 100 million member”.
AccorHotels CEO and chairman Sébastien Bazin said: “This new partnership has many benefits for us. It enables us to become a leading resort operator in a growing market and to complement our offer with attractive leisure destinations to our guests and loyalty members.
“And moreover, we are going a step further in our ambition to be the best provider of multi-nature services to guests by operating hotels in major entertainment complexes which offers new opportunities both in terms of customer experience and of development strategy.”