Accor has announced that it will join forces with UK-based developer Ennismore, owner of The Hoxton, to create a new global lifestyle hotel company.
The new entity will operate under the Ennismore name and will have 12 brands including The Hoxton hotel brand, the luxury Gleneagles estate in Scotland, and the shared workspace brand Working From.
The group will launch with 73 hotels in operation, and over 110 hotels and 150 restaurants and bars in the pipeline.
The entity will be jointly headed by Guarav Bhushan, Accor’s chief development officer, and Sharan Pasricha, founder and CEO of Ennismore. Accor, which is currently Europe’s largest hotel company, will be a majority shareholder, with Pasricha holding a substantial minority position.
To form the new company, Accor announced earlier this week that it would spend US$300 million on acquiring full ownership of sbe, and then add sbe’s brands which include Mondrian, Delano, SLS and Hyde Hotels into the new Ennismore group. Accor purchased a 50 per cent stake in the company in 2018.
Accor has also bought out its partners in Mama Shelter and 25 Hours, with the brands also joining the new group.
According to Accor, the new company is expected to achieve earnings of over US$100 million “by midterm”. The deal is expected to close in early 2021 ‘subject to the employee consultation process and customary regulatory authorizations’, and will be headquartered in London.
Sharan Pasricha, Founder and CEO of Ennismore, commented on the news:
“Over the last nine years, our mission with Ennismore has always been creating hospitality brands that inspire discovery. 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.”
Gaurav Bhushan, CEO of Accor’s Lifestyle operations, said:
“Joining forces with Sharan and Ennismore’s talented teams will be a major step in Accor’s development strategy. With this combination, we are putting together an unrivalled portfolio of unique brands that appeals to owners, partners and guests, supported by the greatest set of talents in the industry, state of the art distribution and tools and a common ambition to continue to grow and innovate. I very much look forward to our journey together.”
Sébastien Bazin, Chairman and CEO 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.”