The Europe’s largest hotel group Accor has announced its plan to merge with Ennismore, which owns The Hoxton and Gleneagles, to form “the world’s largest operator of lifestyle hotels”.
Accor continued its focus on lifestyle brands with plans to join forces with Ennismore, the owner of Hoxton Hotels, according to the announcement from the hotel group on Tuesday.
The two hotel brands’ resulting lifestyle entity, which will be called Ennismore, will be headquartered in London and jointly led by Gaurav Bhushan, the CEO of Accor’s lifestyle division, and Ennismore CEO Sharan Pasricha. The entity will be two-thirds owned by Accor and a third by Pasricha.
The new Ennismore entity will comprise 12 brands with 73 hotels in operation and a development pipeline of 110 hotels with an additional 70 under discussion. More than 150 restaurants and bars are also part of the merger.
To create the new Ennismore entity, Accor intends to spend more than 300 million USD to buy out its partners in sbe Entertainment Group, Mama Shelter and 25hours, taking full ownership of sbe’s boutique hotel brands and much of its food and beverage arm.
Previously in 2018, Accor took on half ownership of sbe Entertainment Group with a 319-million-USD deal. So the independent lifestyle division from Accor will also be formed by sbe’s Mondrian, Delano, SLS and Hyde hotels.
This new, unified and powerful venture will benefit from an in-house global creative studio, designing award-winning interiors and brand communication; an expert digital and technology team innovating the guest experience; and a team of restaurant and bar specialists crafting unique concepts rooted in their neighborhoods.
“Joining forces with Sharan and Ennismore’s talented teams will be a major step in Accor’s development strategy,” Bhushan said in a statement. “With this combination, we are putting together an unrivaled 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.”
Pasricha said: “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.”
The deal is expected to close in early 2021, subject to employee and regulatory approval.