Accor Pursues US IPO for Hoxton Owner Ennismore

Accor SA has engaged investment banks to orchestrate a potential initial public offering (IPO) in the United States for Ennismore Lifestyle Group Ltd. This move signifies Accor's commitment to spinning out its hotel unit, according to individuals familiar with the situation. Ennismore Lifestyle Group is the owner of the Hoxton hotel brand, among others.

The potential IPO is intended to unlock value and provide Ennismore with greater financial flexibility to pursue its growth strategies. While specific financial targets have not been disclosed, the company aims to leverage the public markets to fund expansion and further develop its portfolio of lifestyle hotels. The process is still in its early stages, with the selection of banks being a preliminary step.

Accor, a global hospitality giant, has been strategically reviewing its asset portfolio to optimize performance and shareholder value. The spin-off of Ennismore would allow Accor to focus on its core hotel brands while Ennismore operates as an independent entity. This approach is common in the hospitality industry, enabling specialized management and targeted investment.

Ennismore Lifestyle Group operates a collection of distinctive hotels and brands, including The Hoxton, Gleneagles, and SO/ Hotels & Resorts. The group has been expanding its global footprint, particularly in key urban markets. A US IPO would provide access to a broad investor base and potentially a higher valuation compared to other markets. The timeline for the IPO remains uncertain and subject to market conditions and regulatory approvals.