Friday, December 8, 2023
Friday, December 8, 2023
HomeNewsBusiness NewsGleneagles owner partners with Accor in arrangement which sees Accor become majority...

Gleneagles owner partners with Accor in arrangement which sees Accor become majority shareholder in Ennismore

Accor, the French Hospitality Group, has entered into a new partnership with Ennismore, the parent company of Gleneagles Hotel and The Hoxton hotel chain. It plans to create, “the world’s leading lifestyle operator in the hospitality sector.”

The all-share merger, which has Accor as the majority shareholder and Ennismore’s founder and CEO Sharan Pasricha as a “substantial minority position” brings together Ennismore’s The Hoxton, Gleneagles in Perthshire with Accor’s Delano, SLS, Mondrian, SO/, Hyde, Mama Shelter, 25h, 21c Museum Hotels, Tribe and Jo&Joe brands.

Gaurav Bhushan, CEO of Accor Lifestyle division is joining Pasricha as co-CEO of the new company which will be called Ennismore.

Commenting on the deal Accor chairman and CEO Sébastien Bazin 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.”

The Accor-Ennismore deal is expected to close by early 2021 after the employee consultation processes and customary regulatory authorisations take place. Once completed 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 €15m per year.

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.”

Gaurav Bhushan, 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.”

In order to form the new company Accor also announced it will take full ownership of sbe Group whose hotel brands include the Delano, Mondrian, SLS and Hyde.

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