Accor and Ennismore form the world’s leading lifestyle operator
Accor and Ennismore’s newly combined lifestyle division will form the world’s leading lifestyle operator in the hospitality sector – without losing the components that make these businesses so appealing to travellers. Ennismore, owner of The Hoxton and Gleneagles brands, and Accor, owner of lifestyle brands including Mondrian, SO/, Hyde, Mama Shelter, 25hours, 21c Museum, Tribe and Jo&Joe, will merge into a combined entity that will keep the Ennismore name.
"Lifestyle brands cater for guests who want an experience, where people like to meet or work, at all times of the day, Accor tells The CEO Magazine. "Lifestyle brands are ones that have meaning and create an emotional connection with their guests versus being just a hotel stay.
"They generate over 50 per cent of their revenue from non-room rental, like food and beverage and revenue from locals (people living or working near the hotels)." Accor further adds that the lifestyle segment is not defined by prices or a luxury touch.
Sharan Pasricha, Founder and CEO of Ennismore, and Gaurav Bhushan, CEO of Accor Lifestyle, will cooperatively lead the new lifestyle entity of which Accor will own two-thirds and Sharan one third. The company will base its headquarters in London.
"Over the last nine years, our mission with Ennismore has always been creating hospitality brands that inspire discovery," Sharan discloses in a statement.
"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." – Sharan Pasricha
"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."
To form the new company, Accor will pay US$300 million for the remaining 50 per cent of sbe Group and take full ownership of sbe – it acquired a 50 per cent stake in sbe in late 2018.
sbe includes the Mondrian, SLS and Hyde, as well as F&B brands Cleo and Carna by Dario Cecchini. These brands will be at the centre of the global lifestyle platform. Accor also plans to buy out its partners in Mama Shelter and 25hours.
The combined lifestyle venture will comprise 12 brands with 73 hotels and 150 destination restaurant and bars. More than 110 hotels and another 70 hotels are also under active discussion.
"Lifestyle, entertainment, places with a soul have been at the heart of our development and growth strategy over the last years," states Sébastien Bazin, Accor Chair and CEO.
"Lifestyle is a sector fuelled by passionate and daring entrepreneurs, constantly pushing the boundaries of a reinvented vision of travelling the world." – Sébastien Bazin
"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."
According to Accor, the lifestyle platform should achieve earnings before interest, taxes, depreciation and amortisation of over US$120 million by midterm, the project resulting in significant cost synergies of approximately US$18 million per year.
The company also confirmed that growth will be accelerated, building on a strong footprint in Europe and the US and expanding its presence in the Asia–Pacific, Middle East and South America, supported by Accor’s development teams.
This partnership allows Accor to be at the forefront of lifestyle hospitality. With it, Accor reinforces its offering in one of the fastest-growing segments of the industry. Accor’s Lifestyle operations represent five per cent of Accor’s fees, but over 25 per cent of the pipeline fees.
"Joining forces with Sharan and Ennismore’s talented teams will be a major step in Accor’s development strategy," reinforces Gaurav.
"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."
Closing is expected to occur in early 2021.
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