French hospitality group Accor SA is considering a US initial public offering (IPO) for its lifestyle hotel arm, Ennismore. Sources familiar with the matter indicate that Accor has been engaging with advisors regarding the potential listing, which could value Ennismore at several billion dollars. Ennismore's portfolio comprises over 180 hotels under prominent brands such as The Hoxton, Mondrian, 25hours Hotels, Hyde, and Morgans Originals.
Ennismore, formed as a joint venture in 2021 with Accor owning two-thirds and founder Sharan Pasricha holding one-third, has been a significant growth driver for Accor. An IPO in the US would grant Ennismore access to deep capital markets, allowing for greater independence and flexibility, including the use of its shares for future acquisitions. Accor would likely continue to integrate Ennismore brands into its loyalty program.
This consideration for an Ennismore IPO follows a 2022 transaction where Accor sold a 10.8% stake to a Qatari consortium for €200 million (approximately $233 million), valuing the business at around €2 billion. Ennismore operates with considerable autonomy and has expanded its hotel count from 87 to over 180 since Accor's takeover, with an additional 140 properties in its pipeline. The division also manages 16 hotel and resort brands, over 500 restaurants and bars, and generated an adjusted EBTIDA margin exceeding 30% last year.
While deliberations are in early stages and a transaction is not guaranteed, the move aligns with Accor's strategic shifts, potentially following an agreement for LVMH to acquire full ownership of Accor's Orient Express brand by 2027. Accor does not release specific financial figures for Ennismore, but its lifestyle RevPAR increased by 9.6% year-over-year in the first half of this year, including a 12% jump in the second quarter attributed to Ennismore's brands.
An Accor spokesperson declined to comment on market rumors, and Ennismore also chose not to provide a statement. The company aims to more than double its current lifestyle hotel count to over 700 by 2028, and a US IPO could provide the necessary capital for this expansion, especially to plug its lifestyle portfolio in a category it has been actively investing in.
