(TAN): Accor & Ennismore 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, the companies said.
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, 25hours, 21c Museum Hotels, TRIBE, JO&JOE and Working From_. The new entity will be headquartered in London and will take the name Ennismore.
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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. €100m by midterm, the project resulting in significant cost synergies of approximately EUR 15 million (USD 17.9 million) per year.
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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,” Pasricha added.
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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.”
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