Accor and Ennismore are entering exclusive negotiations to form the world’s leading lifestyle operator in the hospitality sector, focusing on one of the fastest-growing segments of the industry.
Through this all-share merger, a new autonomous and fully asset-light entity will bring together a portfolio of brands that includes The Hoxton, Gleneagles, Delano, SLS, Mondrian, SO/, Hyde, Mama Shelter, 25hours, 21c Museum Hotels, TRIBE, JO&JOE, and Working From_. The new entity will be headquartered in London and will take the name Ennismore. Closing is expected in 2021.
Sharan Pasricha, founder and CEO of Ennismore, and Gaurav Bhushan, CEO of the Accor Lifestyle division, will become Co-CEOs of the combined entity and work with a management team coming from the various brands and industries across the globe. Accor will be the majority shareholder of the new entity, with Sharan Pasricha holding a substantial minority position.
At its inception, the combined entity will comprise 12 brands with 73 hotels in operation and a committed pipeline of more than 110 hotels and another 70 hotels under active discussion, as well as over 150 destination restaurant and bars.
To form this joint venture, Accor intends to buy out its partners in sbe, Mama Shelter, and 25hours. The planned combination also envisages the formation of a new company, which will hold all the leased assets under the combined entity’s brands.
Under the leadership of Sharan Pasricha and Gaurav Bhushan, each brand will retain their unique culture and purpose, supported by dedicated teams and with the full support of their founders, including the Trigano family, founders of Mama Shelter; Christopher Hoffman, founder of 25 Hours; Sam Nazarian, founder of sbe; Laura Lee Brown and Steve Wilson for 21C; and Melissa and Mark Peters for TRIBE.
This new 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.
Accor’s Lifestyle operations today represent 5 percent of Accor’s fees and over 25 percent of the pipeline fees. Growth will be accelerated, building on a strong footprint in Europe and the United States, and a rapidly expanding presence in Asia Pacific, the Middle East, and South America supported by Accor’s development teams.
“Over the last nine years, our mission with Ennismore has always been creating hospitality brands that inspire discovery,” said Sharan Pasricha, founder and CEO of Ennismore. “I’m passionate about how brands make you feel, from the personalized 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 unrivaled player in the hospitality industry.”
“Joining forces with Sharan and Ennismore’s talented teams will be a major step in Accor’s development strategy,” added Gaurav Bhushan, CEO of Accor’s Lifestyle operations. “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.”
Sébastien Bazin, chairman and CEO of Accor, added, “Lifestyle, entertainment, places with a soul have been at the heart of our development and growth strategy over the last years. 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 traveling 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.”