Hoxton hotel chain Ennismore to merge with Ibis owner Accor
Ennismore, the owner of London hotel chain Hoxton, is planning to merge with Accor, the parent company of Ibis, Novotel and Mercure, in further consolidation for the struggling travel and tourism industry.
The companies announced an all-share merger which is expected to create cost synergies of €15m a year, while the deconsolidation of existing leases will pay down Accor’s net debt by €52m this year.
The deal will create a “leading lifestyle operator in the hospitality sector”, with 12 brands and 73 hotels in operation, the firms said.
Based on the current hotel network and pipeline of projects, the platform is expected to achieve earnings before interest, tax, depreciation and amortisation of more than €100m by midterm.
There are more hotels in the pipeline, and the companies are in active discussion over a further 70 properties.
The new entity, which is planning to expand its presence in the Asia Pacific, Middle East and South America regions, will be headquartered in London and will take the name Ennismore.
Ennismore founder Sharan Pasricha and Accor Lifestyle boss Gaurav Bhushan will become co-chief executives of the merged hotel chains.
Accor will be the majority shareholder of the company, with Pasricha holding a substantial minority position, and will buy out its partners; sbe – the owner of the Delano and Mondrian brands – Mama Shelter and 25hours.
Pasricha 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.”