Accor In Talks To Sell €185m Ennismore Stake To Qatari Consortium
Main Photo: The Hoxton Barcelona, an Ennismore hotel
Date: June 2022
Name: Ennismore
Locations: Global
Number of Keys: 130 hotels – Keys: TBA
Seller: Accor/Sharan Pasricha
Buyer: A Qatari consortium, with the deal to include €20m of Shariah compliant financing by Qatar First Bank to the Qatari consortium’s investment vehicle.
Accor is in talks to sell a 10.8% stake in Ennismore to a Qatari consortium for €185m, implying an enterprise value for Ennismore of more than €2b.Closing is expected to occur in the second semester of 2022 and is subject to the employee consultation process, customary regulatory authorisations and closing conditions.
On completion, Accor will retain a controlling stake of 62.2% in Ennismore, with the remaining shares held by Sharan Pasricha, co-chief executive of Ennismore, and the new incoming investors.
Ennismore, founded by Pasricha, merged with hotel giant Accor (which holds a majority shareholding) in October 2021, and now oversees all of Accor’s lifestyle brands.
The combined Ennismore group now consists of more than 130 hotels operating in nearly 40 countries, with over 275 F&B venues, with brands including 25hours Hotels, Gleneagles, JO&JOE, Mama Shelter, Mondrian, Morgans Originals, the Hoxton and TRIBE.
The group said that revenue per available room (revpar) post-pandemic was already significantly exceeding 2019 numbers, with food and beverage driving 50% of revenue, and a pipeline of more than 100 hotels, with more than 60 new projects signed in 2021.
It said Ennismore would continue to expand across the lifestyle and leisure segment with the addition of Accor’s stakes in all-inclusive brand Rixos, and Paris Society, an upscale collection of restaurants and entertainment venues.
Sebastien Bazin, chairman and chief executive of Accor said: “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. 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.”
Price: 10.8% stake at €185m, suggest a total value of €2bn
Price per Key: TBA
THPT Comment: Great deal….gives Ennismore the cash they will require to continue their agressive planned expansion, with 1,000 Jo&Joe hotels alone, across China.
First Seen: The Caterer
The Hotel Property Team (THPT) is a small group of highly experienced business professionals. Between us, we provide a range of skills and experience which is directly relevant to those involved in the hotel property market. For more information – Visit www.thpt.co.uk or email info@thpt.co.uk
