Accor enters into negotiations on sale of 10.8% interest in Ennismore
The negotiations are being carried out with a Qatari consortium for a total amount of €185 million
After the launch of Ennismore, a new joint venture between Accor (which holds a majority shareholding) and Sharan Pasricha in October 2021, Accor has announced that 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, to include €20 million of Shari’a compliant financing by Qatar First Bank LLC (Public) to the Qatari consortium’s investment vehicle.
This transaction demonstrates the excitement and attractiveness of this fast-growing segment, where RevPAR already significantly exceeds 2019 numbers. 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, launching flagship properties SLS & 25hours in Dubai, with F&B driving 50% of revenue exceeding 2019 numbers and with a pipeline of over 100 hotels. Notably, 60 new projects signed in 2021.
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 and entertainment venues.
Paris Society, a luxury F&B operator in France, will add to Ennismore's F&B capabilities by contributing its experience in the upscale restaurant industry and event management
Rixos, the all-inclusive brand in the Middle East, will complement Ennismore adding a new all-inclusive product segment and will leverage Ennismore F&B and programming expertise working to further develop its product experience and network growth.
The combined Ennismore group will now consist of over 130 hotels operating in nearly 40 countries, with over 275 F&B venues.
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.
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 Sharan Pasricha, Founder and Co-CEO of Ennismore, and the new incoming investors.
Sebastien Bazin, Chairman and CEO 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.”
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