Accor to merge with Ennismore to create global lifestyle brand
Accor has confirmed it plans to merge with Gleneagles owner Ennismore as part of a bid to become the world’s largest operator of lifestyle hotels.
The combined brands will act as one entity and operate under the name Ennismore, comprising 12 brands and 73 hotels, including The Hoxton and Mama Shelter, and over 150 restaurants and bars.
The all-share merger will see Accor, Europe’s largest hotel group, invest $300 million to buy out its partners in sbe Entertainment Group - whose portfolio of 22 hotels includes the Delano, Mondrian, SLS and Hyde hotel brands – as well as Mama Shelter and 25hours. Accor will also absorb much of sbe’s food and beverage arm.
Accor initially acquired 50% of the business in 2018.
The new entity will be headquartered in London, with Sharan Pasricha, founder and chief executive of Ennismore, and Gaurav Bhushan, chief executive of the Accor Lifestyle division, acting as co-chief executives.
Accor will be the majority shareholder, with Pasricha holding a “substantial” minority position.
The new lifestyle platform has a projected pipeline of more than 110 hotels, with another 70 hotels under “active discussion”, and is expected to achieve earnings before interest, taxes, depreciation and amortisation of more than $100m (£74m) "in the mid term", according to Accor.
Accor and Ennismore said each brand would retain their “unique culture and purpose” through dedicated teams and the full support of their founders.
The deal is expected to close in the first semester of 2021.
“Over the last nine years, our mission with Ennismore has always been creating hospitality brands that inspire discovery,” said Pasricha.
“I'm passionate about how brands make you feel, from the personalised digital experience to the design, and with an incredible team of operators and creatives around me, we have expanded The Hoxton across the globe; reimagined Gleneagles; and crafted unique restaurant and bar concepts.
“This exciting autonomous entity with Accor - one with culture and brand purpose at its heart - allows us to come together to build on our combined portfolio of unique lifestyle brands, accelerate our growth and explore new markets.
“I look forward to working with Gaurav and Sébastien on this exciting next chapter as we become an unrivalled player in the hospitality industry.”
Sébastien Bazin, chairman and chief executive of Accor, added: “Lifestyle, entertainment, places with a soul have been at the heart of our development and growth strategy over the last years.
“Partnering with Ennismore’s founder Sharan and his great teams will take our Lifestyle ambition to a new and exciting level.
“With this combination, we are leading the hospitality industry by creating the largest and fastest growing ecosystem of world class brands.
“Lifestyle is a sector fuelled by passionate and daring entrepreneurs, constantly pushing the boundaries of a reinvented vision of travelling the world.
“I am proud Accor has been able to join forces with many of the most creative and talented ones.
“This new powerful combination is set to become the engine of our exciting future growth.”