French hospitality company Accor SA has agreed to acquire the company that owns the Fairmont, Raffles and Swissotel luxury hotel brands in a deal that values the company at more than $2.8 billion, Accor said Wednesday.

The sellers, the Qatar Investment Authority and Kingdom Holding Company of Saudi Arabia, will receive $840 million in cash and 46.7 million in new Accor shares. When the deal closes, Qatar will own 10.5% of Accor, and Saudi Prince al-Waleed bin Talal's Kingdom Holdings will own 5.8%, according to Accor.

The parent company, FRHI Hotels & Resorts, owns the three luxury brands, which have about 115 hotels and resorts with 43,000 rooms. FRHI has another 40 hotels and 13,000 rooms under development.

The company also manages famous luxury properties around the world, such as the Plaza Hotel in New York City and the Savoy in London.

Write to Craig Karmin at craig.karmin@wsj.com

(END) Dow Jones Newswires

December 09, 2015 13:35 ET (18:35 GMT)

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