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.
