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AccorHotels has acquired a 85% stake in 21c Museum Hotels, an award-winning hospitality management company that combines museums and hotels to create “a new kind of travel experience”.
21c combines a multi-venue contemporary art museum, boutique hotels and chef-driven restaurants, with 11 properties currently open and under development across the United States.
The firm was founded in 2006 in Louisville, USA, by philanthropists and contemporary art collectors Laura Lee Brown and Steve Wilson, who rehabilitated a series of 19th Century warehouses in Louisville’s downtown arts and theater district to open the first 21c Museum Hotel.
The group will join AccorHotels’ MGallery collection of boutique hotels, marking the introduction of the MGallery brand into the North American market. Co-founders Brown and Wilson will retain a 15% stake in the company, and will remain involved in providing creative guidance.
The 21c division will continue to be led by President & CEO Craig Greenberg, while corporate headquarters will also remain in Louisville, Kentucky.
Accor announced that the purchase price for the 85% stake is $51m (£39m), including a potential earn out payment, and said no real estate is included in the acquisition. The transaction is expected to be completed during the third quarter of 2018.
Kevin Frid, CEO, North & Central America, AccorHotels, said: “We are delighted to welcome 21c Museum Hotels as part of the AccorHotels family of brands, hence strengthening the Group’s footprint in North America in a very unique and promising niche. Together, we have a tremendous opportunity to grow the 21c brand, as well as introduce MGallery into the North American market, building both brand equities and further expanding the full range of unparalleled experiences for our guests.
“This strategic acquisition marks a new step in AccorHotels’ strategy of being the leading player in the Luxury and Lifestyle segment in North America.”
Founder of 21c, Steve Wilson, added: “We are confident that the unique spirit of 21c will not only be preserved, but will flourish within the MGallery collection of boutique hotels. [We] will continue to bring the work of today’s most dynamic and engaging contemporary artists to the public, and this partnership will be a tremendous boost for 21c’s continued development in North America and abroad.
“We are extremely excited to see what the future holds.”
