Hotel group Accor is to form a new €1 billion joint venture which will bring together lifestyle and luxury hospitality brands such as The Hoxton, Mondrian and Gleneagles.
In addition to an all-share deal with Hoxton owner Ennismore, Accor will also buy out the remaining shares in sbe, Mama Shelter and 25hours to form the new company.
The venture, which will use the Ennismore name, brings together 73 hotels at inception with a committed pipeline of more than 110 hotels and another 70 hotels under active discussion, and more than 150 destination restaurant and bars.
Sharan Pasricha, founder and CEO of Ennismore and Gaurav Bhushan, CEO of the Accor Lifestyle division will become co-CEOs of the combined entity, which will be based in London.
Accor will be the majority shareholder of the new entity, with Sharan Pasricha holding a substantial minority position. The combined entity should achieve earnings of more than €100 million in the medium term, the companies said, and would result in cost synergies of approximately €15 million per year.
A clutch of luxury hospitality brands are covered by the deal: The Hoxton, Gleneagles, Delano, SLS, Mondrian, SO/, Hyde, Mama Shelter, 25hours, 21c Museum Hotels, TRIBE, JO&JOE and Working From_.
Ennismore’s Pasricha said: “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.”
The deal, which analysts say is worth more than €1 billion, is expected to close in early 2021.