AccorHotels has announced that it has purchased FRHI holdings, an ownership group that includes Qatar Investment Authority, Kingdom Holding Company of Saudia Arabia and an Ontario Municipal Employees Retirement System company.

FRHI is the parent company of the Fairmont, Swissotel and Raffles brands. The purchase was worth $2.89 billion in the form of $840 million in cash and 46.7 million in Accor shares.

“This is an outstanding opportunity to add three prestigious brands—Fairmont, Raffles and Swissotel—to our portfolio and a great step forward for AccorHotels,”said Sebastien Bazin, chairman and chief executive officer of AccorHotels, in a statement. “It offers us robust and global leadership in luxury hotels, a key segment in terms of geographic reach, growth potential and profitability for long-term value creation.”

Sheik Abdulla Bin Mohammed Saud Al-Thani , CEO of QIA, says that the sale of FRHI Holdings is the right step.

“Since making our investment, Fairmont Raffles Hotels International has become a leading luxury hotel company with an expanded international presence.” He said.  “This deal generates the scale needed to drive the next phase of growth in our real estate and hospitality investments.”

Before the acquisition, AccorHotels has nearly 500 luxury and upscale properties throughout the world. On the otherhand, the three FRHI brands consist of 115 hotels —42 in North America, 28 in Asia-Pacific, 26 in Europe, 17 in Africa and the Middle East, and 2 in South America and resort— a total 43,000 guest rooms, as well as an additional 40 hotels in development that will provide 13,000 rooms.

The group aims to generate around €65 million in revenue and cost synergies.

The acquisition is subject to the regulatory approvals of the antitrust authorities.