PARIS—AccorHotels has signed an agreement to acquire 85% of 21c Museum Hotels. 21c combines a multi-venue contemporary art museum, boutique hotels and chef-driven restaurants, with 11 properties currently open and under development across the United States.
21c Museum Hotels was founded in 2006 in Louisville by philanthropists and contemporary art collectors Laura Lee Brown and Steve Wilson. It will join AccorHotels’ MGallery collection of boutique hotels, marking the introduction of the MGallery brand into the North American market. According to the company, 21c Museum Hotels will benefit from AccorHotels’ support in terms of development opportunities, increased sales and marketing exposure, and access to one of the largest distribution networks in the industry.
Co-founders Laura Lee Brown & Steve Wilson will retain a 15% stake in the company, and will remain closely involved in providing creative guidance and support of the unique combination of art, design and hospitality that defines the 21c experience. 21c Museum Hotels will continue to be led by President & CEO Craig Greenberg. Corporate headquarters for 21c will remain in Louisville, KY.
The purchase price for the 85% stake is $51 million, including a potential earn out payment. No real estate is included in this acquisition. The transaction should be completed during the third quarter of 2018.
Kevin Frid, COO, North & Central America, AccorHotels, said, “This strategic acquisition marks a new step in AccorHotels’ strategy of being the leading player in the luxury and lifestyle segment in North America.”
21c founder Steve Wilson said, “We are confident that the unique spirit of 21c will not only be preserved, but will flourish within the MGallery collection of boutique hotels. 21c will continue to bring the work of today’s most dynamic and engaging contemporary artists to the public, and this partnership will be a tremendous boost for 21c’s continued development in North America and abroad.”