Accor has announced it is entering into exclusive negotiations to sell a 10.8 percent stake in Ennismore to a Qatari consortium for €185 million with financing from Qatar First Bank.
Launched in October 2021, Ennismore is a new joint venture between Accor (which holds a majority shareholding) and Sharan Pasricha, the founder and co-CEO of Ennismore. It is currently the fastest-growing lifestyle hospitality company.
The transaction demonstrates the excitement and attractiveness of the thriving lifestyle and leisure segment, where RevPAR already significantly exceeds 2019. In under a year, Ennismore has shown a high growth performance opening a new hotel every two weeks, expanding its portfolio of brands in new regions, launching flagship properties SLS and 25hours in Dubai, with F&B driving 50 percent of revenue exceeding 2019 levels and with a committed pipeline of over 100 hotels, with more than 60 new projects signed in 2021.
The envisioned negotiation reflects Accor's ongoing simplification strategy pulling together its lifestyle and leisure activities within one dedicated entity. Ennismore will expand across the segment with the addition of Accor's stakes in Rixos, the all-inclusive brand, and Paris Society, an upscale curation of restaurants and entertainment establishments.
Paris Society, the top luxury F&B operator in France, will add to Ennismore's strong F&B capabilities by bringing its experience in the upmarket restaurant industry and event management.
Rixos, the leading all-inclusive brand in the Middle East, will add a new all-inclusive product segment and will leverage Ennismore F&B & programming expertise to expand its product experience and network growth further.
The combined Ennismore group will now comprise over 130 hotels operating in nearly 40 countries, with over 275 F&B venues.
Today, Ennismore has a diverse selection of world-leading lifestyle brands, including 21c Museum Hotel, 25hours Hotels, Delano, Gleneagles, Hyde, JO&JOE, Mama Shelter, Mondrian, Morgans Originals, SLS, SO/, The Hoxton, TRIBE and Working From_.
The negotiations are expected to close in the second semester of 2022 and are subject to the employee consultation process, customary regulatory authorisations and closing conditions.
The anticipated transaction reflects an implied EV/EBITDA multiple of 18 times for 2023 for the combined Ennismore group. Upon finalisation, Accor will possess a controlling stake of 62.2 percent in Ennismore, with the remaining shares held by Sharan Pasricha and the new incoming investors.
"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, has built a powerhouse of global lifestyle brands supported by dedicated entrepreneurs and talented teams," said Sebastien Bazin, Chairman and CEO of Accor. "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 of Ennismore's portfolio of lifestyle brands and its unique business model based on constant innovation, highest quality, a sense of purpose and solid growth."
