Worldwide: The two companies have entered into exclusive negotiations to forge a new lifestyle entity headquartered in London under the name Ennismore, bringing together twelve brands.
The all-share merger will be two-thirds owned by Accor and a third by Sharan Pasricha, Ennismore’s founder. Closing is expected in Q1 of 2021.
The new lifestyle entity will bring together twelve brands including:
• The Hoxton
• Working From_
• Mama Shelter
• 21c Museum Hotels
Ennismore will start out with 73 hotels in operation with a pipeline of 110. It will also run over 150 restaurant and bars, with a projected overall EBITDA of more than €100 million by midterm, according to Accor.
In order to form the joint venture, Accor plans to buy out its partners in Mama Shelter and 25hours. Accor has already taken full ownership of sbe following initial investment in 2018, acquiring the remainder 50 per cent stake from founder Sam Nazarian. Accor now owns sbe’s Delano, Mondrian, SLS, and Hyde brands, as well as the majority of its F&B brands including Cleo, Fili’a and Carna by Dario Cecchini. The deal entails a $300 million cash investment from Accor almost entirely through the redemption of sbe’s debt.
The Ennismore merger also envisages the formation of a new company which will hold all the leased assets under the combined entity’s brands, with the de-consolidation of the existing leases generating a €52 million positive effect on Accor’s consolidated net debt in 2020.
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.”
Sharan Pasricha, founder and CEO of Ennismore, said: “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.”
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.”