The close cooperation between the two companies this time does not mean that all their assets will be sold to Accor.
On January 26, local time, European hotel giant Accor and the luxury hotel giant Faena Group established a strategic partnership, planning to introduce the Faena brand to Dubai and other global destinations.
It is understood that the Faena Group is the creation of Argentine hotelier Alan Faena, which is mainly aimed at luxury hotels and apartments. Currently operating the Faena Buenos Aires integrated hotel, the hotel opened the Faena Hotel Buenos Aires in Buenos Aires in 2004 and the Faena District Miami Beach, and then opened the Faena Hotel in Miami Beach for the first time in 2015.
Accor: Consolidate its leading position in the lifestyle field
Although this may not be a complete acquisition, the further establishment of the partnership between Accor and Faena is in line with Accor's previous plan to vigorously develop the lifestyle hotel brand and try to be a leader in this field. This cooperation has further consolidated its leading position among global competitors.
The scale of the transaction may seem small, but in fact, in Faena's plan for the future, the hotel is more like an urban block containing restaurants, apartments and many cultural elements. In the joint statement of the partnership, the future The direction of effort is marked as the "Faena District" (Faena District), rather than a hotel, more similar to Faena's existing assets in Florida and Argentina.
Faena: Cooperation, not asset sale
Faena founder Alan Faena (co-founded with British investor Len Blavatnik in 2000) emphasized that the close cooperation between the two companies this time does not mean that all of its assets will be sold to Accor.
For Accor, this is just the latest move by Accor to focus on lifestyle hotels. Because you can get a higher revenue share from Faena's restaurants and bars; for Faena, you can get more experience and help. It is not easy to operate the hotel independently based on the current situation, so it is necessary for both parties to find the ideal partner to realize the common vision of both parties.
The Faena-Accor partnership will come into effect after a two-year negotiation period. Accor will also further assist Faena's global expansion plan, which will enter the Dubai market in the next step. The details have not been disclosed.
According to the partnership announcement, the goal of each project is to build a unique and socially responsible overall environment based on cultural experience. And each project will include hotels, residential projects and cultural spaces.
Alan Faena introduced several current investment places as examples:
The original Faena district of Buenos Aires includes the Faena Hotel, Faena Art Center, and several residential buildings in neglected parts of the Argentine city of Puerto Madero;
The Faena district of Miami (previously a relatively neglected piece of land between the South Beach and North Beach communities) includes the Casa Faena and Faena Miami Beach hotels, as well as developments such as Faena Forum exhibition space, luxury apartments and retail stores.
Accor's previous investment
The opening of hotels in tourist destinations has always been a priority for AccorHotels. As part of the company's reorganization last year, Accor Group also established a separate department for its ultra-luxury brands, including the opening of Raffles and other lifestyle hotels , The catering turnover of these hotels accounts for more than half of their revenue.
So at the end of November last year, Accor and London-based boutique lifestyle hotel brand Ennismore jointly established a joint venture, which is the company behind the London company The Hoxton. After the partnership was reached, Accor launched an independent lifestyle hotel platform in the name of Ennismore, combining its Delano, SLS, Mondrian, SO/, Hyde, Mama Shelter, 25hours, 21c Museum Hotel, Tribe and Jo&Joe brands with Ennismore. The Hoxton hotel chain and the Scottish resort hotel Gleneagles are under the same umbrella-Accor Group.
Accor CEO Sebastien Bazin said last year: “There are many companies that want to cooperate with Accor’s lifestyle brands. However, many investors are only willing to cooperate with individual departments rather than the entire Accor Group. "
After the cooperation, Faena's future is not yet known
In Faena's view, the Faena brand is taking the luxury and fashion route, which overlaps with Ennismore. Therefore, it has not been determined whether the Faena brand will fall under Ennismore's jurisdiction. He also pointed out that his transaction is more about partnerships, rather than being managed by Accor.
Retrospectively, the same independent brand W was also controversial when it was sold to a multinational hotel group. Although the scale was expanded after the sale, it still lost too much independence.
So in the view of the founder Faena, although distribution seems to be another benefit of establishing a partnership with Accor, Faena still expressed its willingness to be a smaller boutique brand rather than a large hotel group.
