Hotel Operators Are Betting On Lifestyle

Sign up for smart news, insights, and analysis on the biggest financial stories of the day.

French hospitality giant “Accor,” the largest hotel operator in Europe, has agreed to merge its boutique properties with a U.K. hotel operator called Ennismore.

The deal will create the largest global operator of so-called “lifestyle hotels.”

The Story

Following the all-stock merger, the venture will feature 70+ properties under 12 brands including Mama Shelter, SLS, Mondrian, and 21c.

But What Is A Lifestyle Hotel? If you’ve ever stayed at an airport Hilton Garden Inn – think the exact opposite.

The website for Mama Shelter L.A., for instance, refers to the hotel as a “she” who “brings together paint-splattered artists, well-heeled designers, entrepreneurs, and dance hall DJs.”

  • If that didn’t paint the picture, imagine an active groundfloor bar scene serving-up $18 cocktails.
  • Accor Chief Executive Sebastian Bazin defined a lifestyle hotel as one which derives at least 40% of its revenue from food, beverage, and other entertainment services.

Deal Details: The entity will be two-thirds owned by Accor, but operated under the Ennismore name. Accor also announced yesterday it has spent €300 million to take full ownership of sbe, which owns four of the brands that will now operate under Ennismore.


Two words: Business. Travel.

Lifestyle hotels are designed to serve as a destination in their own right, attracting a local clientele to create a lively vibe with less dependence on business travel.

Many of the largest hotel groups in the world are working to diversify operations:

  • Marriott, Accor, and Radisson have all stepped up efforts to encourage consumers to use their hotels as co-working spaces.

Accor CEO Sebastian Bazin said, “Lifestyle is the fastest-growing hotel segment on the planet…guests want it, and hotel owners want it.”