25hours Hotel, Piazza San Paolino Florence, Italy is part of the Ennismore Group

Accor is in exclusive negotiations with a Qatari consortium to sell a 10.8% stake in global hospitality developer and operator Ennismore for €185 million.

The deal values Ennismore – the largest and fastest growing lifestyle hospitality company in the world – at more than €2 billion.

As part of the transaction, Qatar First Bank LLC will provide €20 million of Shari’a compliant financing to the Qatari consortium’s investment vehicle.

Founded in 2011 by entrepreneur Sharan Pasricha, Ennismore entered a joint venture with Accor in 2021, with Accor having a majority shareholding.

Ennismore will continue to expand across the lifestyle and leisure segment with the addition of Accor’s stakes Rixos, the top all-inclusive brand in the Middle East, and Paris Society, a collection of high-end restaurant and entertainment venues.

“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,” said Accor Chairman and CEO, Sebastien Bazin.

“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.”

Accor said the lifestyle and leisure segments are performing strongly with RevPAR already significantly exceeding 2019 numbers. The move aligns with Accor’s continued simplification strategy through which it is pulling lifestyle and leisure activities together in a single dedicated entity.

In less than a year, Ennismore’s fast-paced growth has seen the company open a new hotel every two weeks, launch flagship properties SLS and 25hours in Dubai, and develop a committed pipeline of over 100 hotels, with over 60 new projects signed in 2021.

Today, Ennismore’s collection of lifestyle brands includes 21c Museum Hotel, 25hours Hotels, Delano, and Gleneagles, to name a few.

The combined Ennismore group will consist of over 130 hotels across nearly 40 countries, with over 275 food and beverage venues.

The transaction is subject to employee consultation, regulatory approvals and conditions, and is expected to close later this year.