Accor doubles down with Ennismore to establish a lifestyle entity with 12 world-class brands. Closing for this new exciting venture is expected to be by the first semester of 2021.
Accor and Ennismore have entered into exclusive negotiations, focusing on the fastest growing segment of the industry, to create a new lifestyle operator in the hospitality sector.
An unrivalled portfolio of 12 world-class brands with 73 hotels and over 150 restaurants and bars in operation are brought together under a new entity named Ennismore. Headquartered in London, Sharan Pasricha, Founder and CEO of Ennismore and Gaurav Bhushan, CEO of the Accor Lifestyle division will become Co-CEOs while Accor remains as the majority shareholder. The brands to be managed under this latest formation are the Hoxton, Gleneagles, Delano, SLS, Mondrian, SO/, Hyde, Mama Shelter, 25h, 21c Museum Hotels, TRIBE, JO&JOE and Working From_.
With this strategic move well-played by Accor, this all-share merger is estimated to achieve an EBITDA of over approximately €100m by midterm (based on the current network and pipeline projects) and a significant cost synergy of approximately €15m per year. Accor also intends to buy its partners in SBE, Mama Shelter and 25h in order to form this joint venture. In establishing a new company to hold all the leased assets under the 12 brands, Accor will be able to deconsolidate its existing leases which will have a €52m positive effect on its consolidated net debt in 2020.
Under the leadership of Sharan Pasricha and Gaurav Bhushan, each brand will retain their unique identity and culture with the full support of their founders. This includes the Trigano family, founders of Mama Shelter; Christoph Hoffman, founder of 25h; Sam Nazarian, founder of SBE; Laura Lee Brown and Steve Wilson for 21C, and Melissa and Mark Peters for TRIBE.
Accor’s lifestyle operations currently represent approximately 5% of its fees and over 25% of its pipeline fees. This new merger, considered as a major step in Accor’s development strategy, will allow both Accor and Ennismore to accelerate their growth, build on an existing strong footprint in Europe and the U.S., and explore new markets especially in Asia Pacific.