France-based hotel giant Accor is in talks to sell a 10.8 per cent shareholding in its Ennismore joint venture to a group of Middle Eastern investors.
The new lifestyle and hospitality group was set up last year, with Accor owning 66.7 per cent of the company alongside hotel entrepreneur Sharan Pasricha who holds a 33.3 per cent stake.
Accor is now selling a chunk of this investment to a consortium of Qatar-based investors for €185 million. Accor will continue to be the majority shareholder in Ennismore after the deal has been completed.
Ennismore includes 14 hotel and co-working brands such as 21c Museum Hotels, 25hours, Gleneagles, Mama Shelter, Mondrian, The Hoxton and TRIBE.
As part of the latest deal, Accor’s Middle Eastern all-inclusive hotel brand Rixos and restaurant and entertainment group Paris Society will also join Ennismore, which now has more than 130 hotels in around 40 countries, plus 275 food-and-beverage venues.
Ennismore is continuing to grow quickly, with a new hotel opening every two weeks on average, and the group currently has a pipeline of 100 further properties on its books.
Sebastien Bazin, chairman and CEO of Accor, called Ennismore 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,” added Bazin.
“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.”