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British hotel company Ennismore seeks to raise hundreds of millions of dollars to bring more of its luxury hotels to the U.S.
People familiar with the matter told Bloomberg that executives are in preliminary talks with potential investors, but no final decision has been made. The expansion could value the London-based company to at least $3B.
Ennismore signed a deal in 2020 to merge its portfolio with French hotel giant AccorHotels. The joint venture includes 73 properties, specifically lifestyle brands. AccorHotels will retain a majority stake in Ennismore if it raises funds for U.S. expansion, according to Bloomberg.
The company operates several hotel chains in the United States, including Hyde Hotels and Mondrian Hotels. According to Bloomberg, the company has about 100 properties under development.
U.S. restaurants have made a comeback after demand hit historic lows during the height of the pandemic. A steady stream of leisure travelers and higher room rates have helped businesses maintain profitability, with luxury hoteliers having a particularly fruitful 2023.
“Luxury and upscale guests, what we call mass affluent customers, have really been prioritizing spending on experiences over material products,” said John Ege, partner at KSL Capital Partners. Bisnow in a previous interview. “We see this trend continuing.”
According to Lodging Econometrics data reported by Hotel Management, as of mid-January, there were 85 branded luxury hotels under construction in the United States with a total of 17,838 rooms.
Hotel giants such as Marriott International have stepped up their efforts to sign luxury hotel contracts, while Hilton recently partnered with Small Luxury Hotels of the World to expand its high-end hotel portfolio.
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