Accor, Europe’s largest hotel group, is planning to merge with Gleneagles owner Ennismore to form what it says will be the world’s largest operator of lifestyle hotels.
As a result of the merger, 73 hotels under 12 brands, including The Hoxton and Mama Shelter, and over 150 restaurants and bars will operate under one roof. To create the company Accor intends to spend more than $300m to buy out its partners in sbe Entertainment Group, Mama Shelter and 25hours, taking full ownership of sbe’s boutique hotel brands and much of its food and beverage arm. The combined company will take the name Ennismore and have its headquarters in London. The deal is expected to close in early 2021, subject to employee and regulatory approval.
Sharan Pasricha, founder and CEO of Ennismore and Gaurav Bhushan, CEO of the Accor Lifestyle division will become co-CEOs of the combined entity. Accor will be the majority shareholder of the new entity, with Sharan Pasricha holding a substantial minority position.
Pasricha said: “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.”
Sébastien Bazin, chairman and chief executive of Accor, said lifestyle hotels had been “at the heart” of the group’s development strategy over the past few 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. This new powerful combination is set to become the engine of our exciting future growth.”