Accor Tuesday said it is entering into exclusive negotiations to sell a 10.8% stake in Ennismore, the lifestyle hospitality company, to a Qatari consortium for €185 million.
The hotel group said this transaction implies an enterprise value for Ennismore in excess of €2 billion.
According to the company, this transaction demonstrates the excitement and attractiveness of this fast-growing segment, where RevPAR already significantly exceeds 2019 numbers.
”In under a year Ennismore has delivered a high growth performance opening a new hotel every 2 weeks, expanding its collective of brands in new regions, launching flagship properties SLS & 25hours in Dubai, with F&B driving 50% of revenue exceeding 2019 numbers and with a committed pipeline of over 100 hotels, with over 60 new projects signed in 2021,” said the company in a statement.
Ennismore will expand across the lifestyle and leisure segment with the addition of Accor’s stakes in hotel brand Rixos and Paris Society, an upscale collection of restaurants & entertainment venues.
The combined Ennismore group will now consist of over 130 hotels operating in nearly 40 countries, with over 275 F&B venues.
Upon completion, Accor will retain a controlling stake of 62.2% in Ennismore, with the remaining shares held by Sharan Pasricha founder & co-CEO of Ennismore and the new incoming investors.
Sebastien Bazin, Chairman and CEO of Accor said: “In only a few years, Accor together with Sharan Pasricha, Fettah Tamince and Laurent de Gourcuff, the three talented founders of Ennismore, Rixos and Paris Society, have built a powerhouse of global lifestyle brands supported by dedicated entrepreneurs and talented teams. Pulling them together and joining forces with our Qatari partners will further unlock the value of Ennismore and take it to the next level. This is a recognition of the strength Ennismore’s portfolio of lifestyle brands and its unique business model based on constant innovation, highest quality, sense of purpose and solid growth”.