Accor to sell £159m Ennismore stake to Qatari consortium
Accor is in talks to sell a 10.8% stake in Ennismore to a Qatari consortium for €185m (£159m), implying an enterprise value for Ennismore of more than €2b (£1.7b).
The deal will include €20m (£17m) of Shari'a compliant financing by Qatar First Bank to the Qatari consortium's investment vehicle.
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."
