Who Owns Fairmont Hotels and Resorts?

Fairmont Hotels & Resorts is a series of luxury hotels based in Dubai, UAE with a global presence. The chain was founded in 1907 by Virginia Fair Vanderbilt and Theresa Fair Oelrichs. However, the hospitality company traces its roots to the 1880s, when Canadian Pacific Hotels opened its first location in Canada.

In Oct 2023, Fairmont won four Condé Nast Traveler’s annual Readers’ Choice Awards in the “Best Resorts in Canada” category. Fairmont Banff Springs ranked #4, followed by Fairmont Chateau Whistler at #5, Fairmont Chateau Lake Louise at #8, and Fairmont Jasper Park Lodge at #10. [1]

Fairmont operates over 90 hotels and resorts in 32 countries globally, with a strong market presence in Canada. Its top-rated destinations include The Plaza in New York, The Savoy in London, Fairmont San Francisco, Canada’s Banff Springs, Shanghai’s Fairmont Peace Hotel, and Dubai’s The Palm.

Each hotel and resort offers seasonal experiences. In 2023, Fairmont’s winter activities included soaking in hot springs in the Canadian Rockies, snowshoeing along frozen lakes in Mont Tremblant, and exploring the slopes in Montreux, Switzerland. Fairmont Banff Springs is in the Banff National Park, a UNESCO World Heritage Site. [2]

Fairmont offers memorable experiences. Each Fairmont hotel and resort connects the guests to the destination’s history, culture, and community. In Feb 2023, Fairmont launched a new itinerary to celebrate the re-opening of its renowned properties in Kenya.

The group has three spectacular Kenyan destinations, Norfolk in Nairobi, Fairmont Mount Kenya, and Fairmont Masai Mara. Established in 1961, Fairmont Masai Mara Safari Club sits on the edge of the Mara River with hippos and crocodiles.

Guests can spot lions, buffalos, and elephants in the savanna from their luxurious rooms, lounge, and outdoor swimming pool. But who owns Fairmont Hotels & Resorts? [3]

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Who is Fairmont Hotels’ Parent Company?

Fairmont is part of Accor, a French multinational hospitality company founded in 1967. Accor is publicly listed on Euronext Paris and the OTC Market in the US. As of Dec 2023, Accor operated over 5,400 properties across over 110 countries globally. The parent company has around 300,000 employees.

Accor is one of the world’s largest hospitality companies in Europe and globally. The parent company owns, manages, and franchises hotels, resorts, and vacation properties across over 40 brands, including Fairmont.

In Dec 2023, Accor introduced its diverse annual line-up of new hotel openings for 2024. The properties span luxury, Ennismore-Lifestyle, premium, and midscale & economy categories. These locations will offer new destinations for travelers of all ambitions, aesthetics, and demographics in 2024. [4]

Accor is committed to Fairmont’s global expansion. Fairmont participates in Accor’s Live Limitless lifestyle loyalty program, providing access to rewards, services, and experiences.

In Jan 2024, Fairmont and Kailas Companies kicked off a downtown redevelopment project on New Orleans’ 1010 Common Street. The property will open in the summer of 2025 and return the Fairmont brand to New Orleans. [5]

Accor relies on strategic partnerships to expand its hospitality brands globally. One of the company’s partners is Arora Group, a leading UK hotel owner-operator. In Jun 2023, Accor and Arora agreed to redevelop UK’s Luton Hoo Hotel under the Fairmont Hotels & Resorts brand.

Luton Hoo hosted Queen Elizabeth and Prince Philip on their honeymoon and Sir Winston Churchill’s famous post-WWII speech. It will join iconic Fairmont properties across the UK and Ireland, such as The Savoy, Fairmont St Andrews, Carton House, and Fairmont Windsor Park. [6]

Accor has transformed and made several acquisitions since Sébastian Bazin became its CEO in 2013. The parent company unveiled its five-year plan in Jul 2023, with commitments on performance benchmarks.

Its strategy of focusing on premium brands is paying off. In 2023, Accor tripled the signings for its premium hotels. Its PM&E category surged 40% over 2019 levels. The company is leaning toward franchising and China to drive growth. [7]

Lobby of the hotel at Shangri-La Boracay

Image Credit: Roméo A.

Fairmont Hotels’ Ownership History

Fairmont’s history started in 1907 when Fairmont San Francisco opened its doors. Its oldest member hotel is the Hamilton Princess and Beach Club, launched on Jan 1, 1885. Fairmont has hosted celebrities, royalty, politicians, and artists, from Queen Elizabeth II to renowned painter Claude Monet, comedian Noël Coward, and musicians Lennon and Yoko.

In 1943, Winston Churchill and Franklin Roosevelt drew plans for the Normandy invasion of Europe at Fairmont Le Château. Fairmont’s flagship San Francisco hotel hosted representatives from 50 countries who drafted and signed the UN Charter.

Fairmont Hotels’ ownership changed hands in 1999 after Canadian Pacific Hotels acquired a majority stake in the business. The two entities merged to form North America’s largest hotel management company.

In 2001, Canadian Pacific Hotels renamed its entire portfolio to Fairmont Hotels & Resorts. Its parent organization, Canadian Pacific Limited, was split into smaller firms. Fairmont emerged from the split-up as a separately-traded company. [8]

Fairmont expanded in the early 2000s by opening new hotels and acquiring rival chains. The company introduced the Willow Stream Spa and opened its first locations in the Middle East and Mexico between 2001 and 2003.

In 2006, Colony Capital acquired Fairmont for $3.9 billion and merged it with Raffles Hotels and Swissôtel to form Fairmont Raffles Hotels International (FRHI).

Fairmont’s parent company, FRHI, was owned by the Qatar Investment Authority, Saudi Arabia’s Kingdom Holding Co., and the Ontario Municipal Employees Retirement System. Accor acquired FRHI’s Fairmont, Raffles, and Swissôtel in 2015 for $840 million.

The deal transferred Fairmont’s ownership to Accor. Accor awarded 10.5% of its business to the Qatari Investment Authority and 5.8% to Kingdom Holding, making them Accor’s minority shareholders. [9]

Image Credit: Phil Desforges

Fairmont Hotels’ Shareholder Structure

Fairmont is a wholly owned Accor brand. The parent organization is a public company listed on the European stock exchange and traded over the counter in the US. As of Dec 2023, Accor had 252,289,352 Stock A shares with one vote. This figure includes 208,457,270 free-float shares held by institutions, insiders, and individual investors. [10]

Accor’s shareholder structure includes institutional investors. Qatar Investment Authority was Accor’s largest shareholder with 9.28%, followed by Saudi’s Kingdom Holding at 6.8%.

Other top players are Pzena Investment at 5.98%, Shanghai State-owned Assets at 5.39%, Harris Associates at 5.17%, Barings Ltd at 2%, and Amundi Asset at 1.56%. In Mar 2024, Accor repurchased 2.77% of its share capital from Jinjiang International for €275 million. The deal reduced Jinjiang International’s stake in Accor.[11]

Accor’s shareholder structure has companies and the general public. Its top 8 shareholders own 51% of the company. As of Dec 2023, retail investors and institutional owners were tied at 31% each. Private companies are Accor’s third-largest shareholder group with 10%, followed by hedge funds at 6.9%, private equity firms at 6.3%, public companies at 6.0%, and insiders at less than 1%. [12]

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