In the latest round of hotel acquisitions, European hotel giant AccorHotels announced it has signed an agreement to purchase FRHI Holdings Ltd. in a cash-and-share deal valued at $2.9 billion.

Fairmont Raffles Hotels International (FRHI) is the parent company of Fairmont, Raffles and Swissôtel brands, a portfolio consisting of 155 hotels and resorts in 34 countries. The acquisition will advance AccorHotels in the upscale and luxury segment, where it competes with the likes of Marriott-Starwood and InterContinental Hotels Group. AccorHotels will own nearly 500 hotels as a result of the buyout.

According to an article from Reuters, AccorHotels said it would pay for FRHI with $840 million in cash and by issuing 46.7 million new shares, leaving Qatar Investment Authority (QIA) with a 10.5 percent stake in AccorHotels, and Kingdom Holding 4280.SE with a 5.8 percent share.

A shareholder meeting will be held in the second half of 2016 to finalize the deal. 42 of the properties to be acquired by AccorHotels are located in North America, where it previously had little presence.