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Accor has announced that it is entering into exclusive negotiations to sell a 10.8% stake in Ennismore to a Qatari consortium for a total of €185m (£159). The move will reportedly value Ennismore in excess of €2bn (£1.7bn).
Lifestyle hospitality company Ennismore was first launched as a joint venture between Accor, which currently holds a majority shareholding, and Sharan Pasricha in October 2021.
Accor said the latest transaction “demonstrates the excitement and attractiveness of this fast-growing segment”, where RevPAR already exceeds 2019 numbers.
In under a year, Ennismore has reportedly delivered a high growth performance opening a new hotel every two weeks, expanding its collective of brands in new regions, launching flagship properties SLS and 25hours in Dubai, with F&B driving 50% of revenue exceeding 2019 numbers and with a committed pipeline of over 100 hotels.
Accor said that selling this stake would reflect its continued simplification strategy, pulling together its lifestyle and leisure activities within one single dedicated entity.
Ennismore is also set to expand across the lifestyle and leisure segment with the addition of Accor’s stakes in Rixos and Paris Society. The combined Ennismore group will now consist of over 130 hotels operating in nearly 40 countries, with over 275 F&B venues.
Ennismore currently comprises a portfolio of lifestyle brands including 21c Museum Hotel, 25hours Hotels, Delano, Gleneagles, Hyde, JO&JOE, Mama Shelter, Mondrian, Morgans Originals, SLS, SO/, The Hoxton, TRIBE and Working From_.
Closing is expected to occur in the second semester of 2022 and is subject to the employee consultation process, customary regulatory authorizations and closing conditions.
Following the sale, Accor will retain a controlling stake of 62.2% in Ennismore, with the remaining shares held by Sharan Pasricha founder and co-CEO of Ennismore and the new incoming investors.
Sebastien Bazin, chairman and CEO of Accor, said: “In only a few years, Accor together with Sharan Pasricha, Fettah Tamince and Laurent de Gourcuff, the three talented founders of Ennismore, Rixos and Paris Society, have built a powerhouse of global lifestyle brands supported by dedicated entrepreneurs and talented teams.
“Pulling them together and joining forces with our Qatari partners will further 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, highest quality, sense of purpose and solid growth.”
