Accor looks to sell 10.8% interest in Ennismore

Accor announced it is entering into exclusive negotiations to sell a 10.8 percent stake in Ennismore to a Qatari consortium for a total amount of €185 million.

Ennismore is a joint venture between majority shareholder Accor and co-founder and CEO Sharan Pasricha that was created in 2020 to operate hotels. Ennismore today comprises a collective of 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 transaction reflects Accor’s continued simplification strategy, pulling together its lifestyle and leisure activities within one dedicated entity. Ennismore will expand across the lifestyle and leisure segment with the addition of Accor’s stakes in Rixos, the all-inclusive brand, and Paris Society, an upscale collection of restaurants and entertainment venues.

“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, have 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 Ennismore’s portfolio of lifestyle brands and its unique business model based on constant innovation, highest quality, sense of purpose and solid growth.”

According to Accor, in under a year Ennismore has delivered high-growth performance, opening a new hotel every 2 weeks, expanding its collective of brands in new regions, launching flagship properties SLS & 25hours in Dubai, with F&B driving 50 percent of revenue exceeding 2019 numbers and with a committed pipeline of over 100 hotels, with over 60 new projects signed in 2021.

The combined Ennismore group will now consist of over 130 hotels operating in nearly 40 countries, with over 275 F&B venues.

Closing is expected to occur in the second semester of 2022 and is subject to the employee consultation process, customary regulatory authorizations and closing conditions.

The transaction reflects an implied enterprise value/earnings before interest, taxes, depreciation and amortization multiple of 18x for 2023 for the combined Ennismore group. Upon completion, Accor will retain a controlling stake of 62.2 percent in Ennismore, with the remaining shares held by Pasricha and the new incoming investors.