SINGAPORE Raffles Holdings Limited has entered into an agreement to acquire Swissotel Holding AG, which owns and operates Swissotel Hotels & Resorts, from SAirRelations AG (a division of the SAirGroup) for $243.8 million. The transaction is slated to be complete on May 31, 2001.
With this acquisition, Raffles will more than double its rooms inventory, strengthen its brand equity, and diversify its geographic distribution. Raffles will gain ownership of the Swissotel brand and its trademarks, and management contracts for 23 hotels, including six majority or wholly-owned hotel properties and three hotels with minority interests.
Furthermore, by December 31, 2001, the company will have the opportunity to acquire the remaining third-party minority interests in the U.S. subsidiary that manages the North American Swissotel properties. (4/23/01)