ACCOR (EPA:AC) - Accor doubles down on lifestyle and enters into exclusive negotiations with Ennismore

Transparency directive : regulatory news

24/11/2020 18:22

Press Release
NOVEMBER 24TH 2020

Accor doubles down on lifestyle and enters into exclusive negotiations with
                                Ennismore

THE NEWLY ESTABLISHED LIFESTYLE ENTITY IS SET TO BECOME THE LARGEST & FASTEST
            GROWING GLOBAL PLAYER WITH 12 WORLD-CLASS BRANDS

Accor & Ennismore today announced they are entering into 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 an unrivalled portfolio of world class brands, including
The Hoxton, Gleneagles, Delano, SLS, Mondrian, SO/, Hyde, Mama Shelter, 25h,
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 of the combined entity, alongside
an experienced, highly skilled and international 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 with a committed pipeline of more than 110 hotels and another c. 70
hotels under active discussion, and over 150 destination restaurant and bars.
Based on the current network and pipeline the lifestyle platform should achieve
an EBITDA of over c. EUR100m by midterm, the project resulting in significant
cost synergies of approximately EUR15m per year.

In order to form this joint venture, Accor intends to buy out its partners in
sbe (see dedicated release by Accor), Mama Shelter and 25h. 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 EUR52m positive effect on Accor's consolidated
net debt in 2020.

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; Christoph Hoffman, founder of 25h; Sam Nazarian, founder of sbe;
Laura Lee Brown and Steve Wilson for 21C, and Melissa and Mark Peters for
TRIBE.

This new, unified and powerful 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
neighbourhoods.

Accor's Lifestyle operations today represent c.5% of Accor's fees and over 25%
of the pipeline fees. 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.

Closing is expected to occur in the first semester of 2021 and is subject to
the employee consultation process and customary regulatory authorizations for
projects of this type.

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. I look
forward to working with Gaurav and Sébastien on this exciting next chapter as
we become an unrivalled player in the hospitality industry."

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. I very much look forward to our journey together.

Sébastien Bazin, Chairman & CEO of Accor said "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 fueled by passionate and daring entrepreneurs, constantly pushing the
boundaries of a reinvented vision of travelling 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. "

                                    ***

                              ABOUT ENNISMORE

Founded in London in 2011 by entrepreneur Sharan Pasricha, Ennismore develops,
operates and curates unique hospitality properties and experiences in some of
the most exciting cities and neighbourhoods around the world. It has assembled
a unique team of the brightest doers, smartest thinkers and most talented
makers from inside and outside the hospitality industry to create brands that
inspire discovery. Ennismore is a creatively minded multi-faceted company, one
that's rooted in culture and community and hones in on how brands and
experiences make you feel.

The Ennismore family comprises The Hoxton, a global series of open-house
hotels; Gleneagles, the iconic glorious playground in the Scottish countryside
with an upcoming townhouse in Edinburgh; Working From_, a new shared workspace
brand; Sibling, a new hotel proposition for value and convenience; Eynsham
Hall, a 50-acre country-house estate in Oxfordshire that will soon be
reimagined along with a new private members' club in London, in addition to its
growing portfolio of in-hotel restaurants and bars.

Ennismore has been included in Fast Company's World's Most Innovative Companies
2020 list; ranked#29 in FT1000: Europe's Fastest Growing Companies; and is part
of FT Future 100 - the UK's fastest growing businesses that are shaping the
future of their sector.

                              ABOUT ACCOR

Accor is a world leading hospitality group consisting of more than 5,000
properties and 10,000 food and beverage venues throughout 110 countries. The
group has one of the industry's most diverse and fully-integrated hospitality
ecosystems encompassing luxury and premium brands, midscale and economy
offerings, unique lifestyle concepts, entertainment and nightlife venues,
restaurants and bars, branded private residences, shared accommodation
properties, concierge services, co-working spaces and more. Accor also boasts
an unrivalled portfolio of distinctive brands and approximately 300,000 team
members worldwide. Over 65 million members benefit from the company's
comprehensive loyalty program ALL - Accor Live Limitless - a daily lifestyle
companion that provides access to a wide variety of rewards, services and
experiences. Through its Planet 21 - Acting Here, Accor Solidarity, RiiSE and
ALL Heartist Fund initiatives, the group is focused on driving positive action
through business ethics, responsible tourism, environmental sustainability,
community engagement, diversity and inclusivity. Founded in 1967, Accor SA is
headquartered in France and publicly listed on the Euronext Paris Stock
Exchange (ISIN code: FR0000120404) and on the OTC Market (Ticker: ACRFY) in the
United States. For more information visit group.accor.com or follow Accor on
Twitter, Facebook, LinkedIn and Instagram

Press Contacts

Accor

Charlotte Thouvard
Senior Vice President Group External
Communications
T. : +33 1 45 38 19 14
E: charlotte.thouvard@accor.com

Pierre-Loup Etienne
VP Investors Relations
T. : +33 (0)1 45 38 47 76
E: pierre-loup.etienne@accor.com

Ennismore

Marcos Eleftheriou
Director of Culture & Corporate Communications
T. : + 44 7939 716344
E: marcos.eleftheriou@ennismore.com

ACCOR's latest news

05/04/2024 17:45

ACCOR (EPA:AC) - Accor doubles down on lifestyle and enters into exclusive negotiations with Ennismore

Transparency directive : regulatory news

ACCOR's latest news

Other stories