Accor sells stake in Essendi for up to $1.1B

PARIS — Accor has signed a memorandum of understanding to sell its stake in Essendi (formerly AccorInvest) to a consortium including Blackstone for up to €975 million ($1.1 billion).

Under the agreement, Blackstone and Paris-based Colony Investment Management will buy Accor’s 30.56% stake in Essendi. As part of the deal, Accor could receive up to €975 million (€675 million upon closing and an earn-out of up to €300 million).

Essendi’s portfolio will be gradually converted into franchise contracts, which Accor said aligns with its strategy to simplify and strengthen the resilience and predictability of its business model. All hotels in the portfolio would remain under Accor brands, and the new franchise agreements would have a 20-year term.

In addition, Accor said the transaction would be consistent with the recurring EBITDA trajectory it presented at its 2023 Capital Markets Day.

The transaction is scheduled to close in the third quarter, subject to the finalization of the shareholders' agreement between Blackstone and the other Essendi shareholders, as well as the usual regulatory and antitrust approvals. If the transaction is completed, Accor said it would return most of the disposal proceeds to shareholders through an additional €500 million share buyback program.

Accor also said the release of this transaction enables the company to immediately launch the first tranche of €225 million of the share buyback program for fiscal year 2026, announced on February 19.

The company is also exploring a potential U.S. IPO for its lifestyle hotel vertical, Ennismore, this year. Ennismore operates over 180 hotels under 16 lifestyle brands, including The Hoxton, Mondrian, 25hours Hotels, Hyde and Morgans Originals.