The lifestyle segment continues to be attractive, as evidenced by the sale of a 10.8% stake in Ennismore just announced by Accor.
Accor has entered into exclusive negotiations to sell a 10.8% stake in Ennismore to a consortium of Qatari investors led by Qatar First Bank (QFB) for a total consideration of €185 million. The transaction is based on an enterprise value of Ennismore of more than €2 billion, the group said in a statement.
Born out of a joint venture between Accor, which holds a majority stake, and Sharan Pasricha in October 2021, as the world's leading lifestyle hotel, Ennismore has since recorded strong growth performance, opening a new hotel every fortnight.
In just under a year, its brand collective has expanded exponentially into new regions with the launch of SLS Dubai, The Hoxton, Pobelou in Barcelona, 25hours Copenhagen, Mama Shelter Lisbon, TRIBE La Défense and JO&JOE Medellin. Its current pipeline is equally strong with over 100 hotels and over 60 new projects signed in 2021.
The proposed transaction reflects Accor's ongoing simplification strategy of combining its lifestyle and leisure businesses into a single dedicated entity. The new agreement would expand Ennismore's offering in the lifestyle and leisure segments through Accor's interests in Rixos, the luxury all-inclusive hotel operator, and Paris Society, the collection of upscale restaurants and entertainment venues.
Together with Ennismore's existing Cultural Lifestyle brand collective, the group will become a powerhouse of 17 brands, with 130 hotels open and 160 committed to the pipeline, 50 iconic venues, and over 220 restaurants and bars in 40 countries.
The transaction is expected to close in the second half of 2022, however upon completion Accor will retain a 62.2% majority stake in Ennismore, with the remaining shares held by Sharan Pasricha, founder and co-CEO of Ennismore, and the new incoming investors.
In just a few years, Accor and Sharan Pasricha, Fettah Tamince and Laurent de Gourcuff, the three talented founders of Ennismore, Rixos and Paris Society, have built a portfolio of global lifestyle brands, supported by dedicated entrepreneurs and talented teams. By bringing them together and joining forces with our Qatari partners, we will unlock the value of Ennismore and take it to the next level. This is a recognition of the strength of Ennismore's portfolio of lifestyle brands and its unique business model based on constant innovation, the highest quality standards, a clear vision and solid growth.
Sébastien Bazin, CEO of Accor
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