Accor and Hoxton unite to create a new family of boutique hotels
Europe's largest hotel brand, Accor, has struck a deal with London-based hospitality owner and developer Ennismore to form a group of hotel and hospitality brands.
The new entity will take the name Ennismore and will serve as the "umbrella" group for the following brands: The Hoxton, Gleneagles, Delano, SLS, Mondrian, SO/, Hyde, Mama Shelter, 25Hours, 21c Museum Hotels, Tribe, Jo&Joe and WorkingFrom_, a coworking brand by The Hoxton.
Accor also announced in a press release that it would take "full ownership" of sbe hotel brands, which includes the Delano, SLS, Mondrian and Hyde brands, allowing for a neater integration of the brands that will make up the new Ennismore group.
Two-thirds of the group will be owned by Accor, while Ennismore's founder Sharan Pasricha will own the remainder. Mr. Pasricha will serve as co-CEO with Gaurav Bhushan, Accor's chief development officer, as reported by the Financial Times.
This venture reflects a larger shift in the industry where hotel companies are looking at ways to earn more revenue from other sources besides people spending nights in hotel rooms. This pattern began to take hold before the pandemic, but it's certainly accelerated since COVID-19 as hotels have faced record-low levels of occupancy and revenue.
For more TPG news delivered each morning to your inbox, sign up for our free daily newsletter.
Considering the brands that will make up the new Ennismore group, it's easy to see this trend playing out in real-time. Many of the hotels -- especially with brands like The Hoxton, SLS and Mama Shelter -- serve in their communities as a gathering spot for locals in addition to visitors. This is achieved by creating appealing common spaces with bars, restaurants, pools and more that act as attractions in their own right.
According to a press release, the new group will have 73 hotels across 12 brands on day one, with a further 110 future hotels committed, 70 in negotiations and about 150 restaurants and bars. And, the new group will "benefit from an in-house global creative studio, designing award-winning interiors and brand communication; an expert digital and technology team innovating the guest experience; and a team of restaurant and bar specialists crafting unique concepts rooted in their neighborhoods," according to the release.
There's no word yet on whether the hotels in the newly formed group will participate in Accor's ALL - Accor Live Limitless loyalty program but there's a good chance they will, given Accor's majority ownership in the new venture and the fact that many of the properties already do.
Per the press release, the merger is expected to close in the first half of 2021, subject to regulatory approvals.
TPG featured card
at Bilt's secure site
Terms & restrictions apply. See rates & fees.
| 1X | Choose to earn up to 1X points on rent and mortgage payments with no transaction fee |
| 2X | Earn 2X points + the option to earn 4% back in Bilt Cash on everyday purchases |
Pros
- Choice to earn up to 1 Bilt Point per dollar spent on rent and mortgage payments
- Elevated everyday earnings with both Bilt Points and the option to earn Bilt Cash
- $400 Bilt Travel Portal hotel credit per year (up to $200 biannually)
- $200 Bilt Cash annually
- Priority Pass membership
- No foreign transaction fees
Cons
- Moderate annual fee
- Designed primarily for members seeking a premium, all-in-one card
- Earn points on housing with no transaction fee
- Choose to earn 4% back in Bilt Cash on everyday spend. Use Bilt Cash to unlock point earnings on rent and mortgage payments with no transaction fee, up to 1X.
- 2X points on everyday spend
- $400 Bilt Travel Hotel credit. Applied twice a year, as $200 statement credits, for qualifying Bilt Travel Portal hotel bookings.
- $200 Bilt Cash (awarded annually). At the end of each calendar year, any Bilt Cash balance over $100 will expire.
- Welcome bonus (subject to approval): 50,000 Bilt Points + Gold Status after spending $4,000 on everyday purchases in the first 90 days + $300 of Bilt Cash.
- Priority Pass ($469/year value). See Guide to Benefits.
- Bilt Point redemptions include airlines, hotels, future rent and mortgage payments, Lyft rides, statement credits, student loan balances, a down payment on a home, and more.