French multinational hotel group Accor is in talks with London-headquartered Ennismore over an all-share merger to create a lifestyle hotel company uniting 12 international brands.
Accor, which operates in 100 countries with more than 4,800 hotels, will be the majority shareholder of the new entity, which will keep the name Ennismore and be headquartered in London. Ennismore founder Sharan Pasricha will hold a substantial minority position. Gaurav Bhushan (CEO of the Accor Lifestyle division) will join Pasricha as co-CEO.
The lifestyle hotel business will bring together brands including The Hoxton, Gleneagles, Delano, SLS, Mondrian, SO/, Hyde, Mama Shelter, 25hours, 21c Museum Hotels, Tribe and Jo&Joe. Initially, it will comprise 73 properties, with nearly 200 further hotels in the pipeline or under discussion. Some 150 restaurants and bars are also set to be brought into the family.
Accor will acquire the interests of its partners in sbe, Mama Shelter and 25hours to create the firm, which will own all the leased assets. The deconsolidation of existing rents will have a positive effect of €52 mln on the consolidated net debt of Accor in 2020, the group said.
Said Pasricha: '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.'
Sebastien Bazin, chairman and CEO of the Accor group, said: 'With this merger, we are once again breaking new ground by creating the largest and fastest-growing brand ecosystem in the industry. The lifestyle is a world of the hotel industry driven by passionate and daring entrepreneurs, who constantly reinvent the world of travel.
'I am proud to see Accor alongside the most creative and talented of them. This new organization aims to establish itself as the engine of our future growth.'