Recently, European hotel giant Accor Group (Accor) agreed to form a new joint venture company with London-based hotel operator Ennismore in an all-stock manner to build the world's largest fashion hotel brand. This move aims to target the American market and create a more influential lifestyle hotel brand.
It is understood that this transaction is a cashless stock merger. The new company after the merger was officially announced on November 24, but it will continue to operate under the name of Ennismore. Accor holds 2/3 of the shares, and Ennismore founder Sharan Pasricha holds With the remaining 1/3 of the shares, Pasricha and Accor's Chief Development Officer Gaurav Bhushan jointly serve as CEOs.
After the merger, Accor will operate the company's 10 lifestyle brands, including Mondrian, Delano and SLS and Hoxton's assets, a total of 9 hotels and a co-working company. In addition, the combined entity will focus on catering and entertainment activities. The brand will also open in 73 hotels and 110 development sites and more than 150 restaurants, with a reported enterprise value of US$1 billion.
Prior to this, Accor spent approximately US$500 million in ownership of many lifestyle brands in the past few years. Including the acquisition of the remaining shares of hotel brands Delano, Mondrian, SLS and Hyde held by SBE founder Sam Nazarian to expand its lifestyle hotel brand. Although Nazarian retains full control of the Disruptive Restaurant Group, this does not affect Accor's ambitions in the lifestyle hotel sector.
At present, Accor has 12 lifestyle brands, of which 73 hotels are in operation, and another 110 are preparing for the construction of new departments. Brands include The Hoxton, Gleneagles, Delano, SLS, Mondrian, SO/, Hyde, Mama Shelter, 25h, 21c Museum Hotels, TRIBE, JO&JOE and WorkingFrom.
Sébastien Bazin, CEO and Chairman of Accor, said: "This cooperation will greatly enhance Accor's influence in the lifestyle hotel field. In his view, lifestyle hotel is a passionate and A bold industry."
In the eyes of Pasricha, the founder of Ennismore, the move also helped the company expand the influence of the Hoxton and Gleneagles brands on a global scale.
