Accor is already cashing in on its move to focus on lifestyle hotels as it announced on Tuesday 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 (US$195 million). The deal includes €20 million (US$21 million) of Shari’a compliant financing by Qatar First Bank to the Qatari consortium’s investment vehicle. The transaction, which marks a signal that Middle Eastern sovereigns might be returning to the hotel investment market, implies an enterprise value for Ennismore in excess of €2 billion (US$2.1 billion).
Closing is expected to occur in the second half of 2022 and Accor said 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 Ennismore Founder and Co-CEO Sharan Pasricha, as well as the incoming investors.
F&B-driven Ennismore concepts have been opening every two weeks and recently included the launch of flagship properties SLS and 25hours in Dubai. Accor says Ennismore has a committed pipeline of over 100 hotels and signed some 60 new projects in 2021.
Accor also stated it plans to further grow its all-inclusive, Middle East-focused brand, Rixos, as well as its upscale collection of restaurants and entertainment venues in France that sit under the Paris Society moniker. The combined Ennismore group now consist of more than 130 hotels operating in nearly 40 countries, with over 275 F&B venues.
Ennismore today comprises brands that include 21c Museum Hotel, 25hours Hotels, Delano, Gleneagles, Hyde, JO&JOE, Mama Shelter, Mondrian, Morgans Originals, SLS, SO/, The Hoxton, TRIBE and Working From.