Dive Brief:
- Accor and Ennismore entered into exclusive negotiations with Mexico-based Royal Holiday Group to manage 17 properties across the U.S., Mexico and Argentina, France-based Accor shared Thursday.
- Of the properties — which account for 3,200 keys — 11 will be operated by Accor under its Swissôtel, Mercure, Mercure Living and Ibis Styles brands, following renovations. The remaining six will be all-inclusive resorts in Mexico rebranded and managed by Ennismore, of which Accor is a majority stakeholder.
- In a statement, Accor Americas CEO Thomas Dubaere called the move “an incredible opportunity for Accor to expand its Premium Midscale & Economy brands in new destinations throughout the region.” Accor declined to share how many of the hotels are in the U.S., or their exact locations.
Dive Insight:
The $79 million deal, expected to close in the second half of the year following regulatory and antitrust approval, will be paid to Royal Holiday Group in phases and partially go toward a 30-month, $130 million renovation plan for the 17 properties.
Properties are “strategically located” in beachfront resort destinations, and the asset-light portfolio will allow Accor to “accelerate growth in this region,” per the announcement.
Three hotels in Mexico will be rebranded under Ennismore’s all-inclusive Rixos Hotels flag, marking the upper upscale brand’s entry into the Americas region. Accor’s all-inclusive resort portfolio has seen a compound annual growth rate of 25% in the last three years, per the announcement.
While Accor has been making a push in luxury in recent years, premium, midscale and economy brands make up 90% of its 5,000-hotel global portfolio, according to a September announcement.
Accor and Ennismore entered into a joint venture in 2021.
