The owner operator of The Hoxton and Gleneagles is to enter into a merger with Accor in a bid to create the ‘world’s leading lifestyle operator in the hospitality sector’.
Ennismore and Accor have entered into ‘exclusive negotiations’ to become a combined entity that will comprise 12 brands, with 73 hotels in operation and a pipeline of more than 110 hotels and another c.70 hotels under ‘active discussion’.
The brands include 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.
Sharan Pasricha, founder and CEO of Ennismore and Gaurav Bhushan, CEO of the Accor Lifestyle division will become co-CEOs.
Accor will be the majority shareholder of the new entity, with Sharan Pasricha holding a substantial minority position, with the deal expected to be completed in the ‘first semester’ of 2021.
In order 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.
The deconsolidation of the existing leases will have a €52m positive effect on Accor’s consolidated net debt in 2020.
Growth will be accelerated, building on a strong footprint in Europe and the U.S, and a rapidly expanding presence in Asia Pacific, the Middle East and South America supported by Accor’s development teams.
Sharan Pasricha, Founder & CEO of Ennismore said: “Over the last nine years, our mission with Ennismore has always been creating hospitality brands that inspire discovery. I’m passionate about how brands make you feel, from the personalised 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.”
Gaurav Bhushan, CEO of Accor’s Lifestyle operations said: “Joining forces with Sharan and Ennismore’s talented teams will be a major step in Accor’s development strategy. With this combination, we are putting together an unrivalled 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.”