Accor and boutique hospitality group Ennismore, parent company of the Hoxton hotel chain and Scotland's Gleneagles resort, have announced plans to create a standalone lifestyle platform comprising a dozen of their hotel brands.
The entity will bring Ennismore's Hoxton and Gleneagles properties under the same umbrella as Accor's Delano, SLS, Mondrian, SO/, Hyde, Mama Shelter, 25h, 21c Museum Hotels, Tribe and Jo&Joe brands. The portfolio will also include The Hoxton's Working From_ coworking offshoot.
The company, which will be based in London, will operate under the name Ennismore. Accor will be the group's majority shareholder, with Ennismore founder and CEO Sharan Pasricha holding a "substantial minority position".
In order to form the new company, Accor has concurrently announced that it will take full ownership of lifestyle hospitality group SBE as part of a US$300 million cash deal that includes the Delano, Mondrian, SLS and Hyde hotel brands, as well as the group's Cleo, Fili'a and Carna by Dario Ceccini food and beverage concepts. Accor acquired a 50% stake in SBE in late 2018.
Accor also intends to buy out its partners in the Mama Shelter and 25hours brands.
Altogether, these brands have a footprint spanning 73 hotels and 150 restaurants and bars, as well as a development pipeline of more than 110 upcoming hotels.
"Lifestyle, entertainment, places with a soul have been at the heart of our development and growth strategy over the last years," said Accor CEO Sebastien Bazin in a statement. "Partnering with Ennismore's founder Sharan and his great teams will take our lifestyle ambition to a new and exciting level."
Accor estimates that the lifestyle platform should achieve an Ebitda (earnings before interest, taxes, depreciation and amortisation) of more than about US$119 million, or 100 million euros, within the next four to five years, with the entity expected to create "significant cost synergies" of approximately US$17.8 million, or 15 million euros, per year.
The company added that under the new entity, Accor's lifestyle brand growth "will be accelerated."
The Accor-Ennismore deal is projected to close by early next year.
Source: Travel Weekly