After the launch of Ennismore, a new joint venture between Accor (which holds a majority shareholding) and Sharan Pasricha in October 2021, Accor said it is entering into exclusive negotiations to sell a 10.8% stake in Ennismore to a Qatari consortium for a total amount of 185 million euros ($195.1 million), to include 20 million euros ($21.1 million) of Shari’a compliant financing by Qatar First Bank LLC to the Qatari consortium’s investment vehicle.
In under a year Ennismore has delivered a high growth performance opening a new hotel every two weeks, expanding its collective of brands in new regions and launching flagship properties SLS and 25hours in Dubai, with F&B driving 50% of revenue exceeding 2019 numbers and with a committed pipeline of more than 100 hotels, with more than 60 new projects signed in 2021, the company reports.
The envisioned transaction reflects Accor’s continued simplification strategy pulling together its lifestyle & leisure activities within one single 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 & entertainment venues.
The combined Ennismore group will now consist of more than 130 hotels operating in nearly 40 countries, with more than 275 F&B venues.
Ennismore today consists of 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_.
Closing is expected to occur in the second semester of this year and is subject to the employee consultation process, customary regulatory authorizations and closing conditions.
The envisioned transaction reflects an implied EV/EBITDA multiple of 18x for 2023 for the combined Ennismore group. Upon completion, Accor will retain a controlling stake of 62.2% in Ennismore, with the remaining shares held by Pasricha, founder/co-CEO of Ennismore, and the new incoming investors.
Sebastien Bazin, chairman/CEO, 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.”