The 21c Museum Hotel in Kansas City, MO, opened two weeks earlier. Image Credit: 21c Museum Hotels
AccorHotels, based in Paris, has actually taken an acquisitive taste to American boutique luxury hotels.
This week, the international travel and way of life group accepted get 85 percent of 21c Museum Hotels, a hospitality management business that combines a contemporary art museum with a hotel. The Louisville, Kentucky-based firm runs eight residential or commercial properties with three more under development throughout the United States.
This arrangement allows 21c Museum Hotels to utilize AccorHotels’ worldwide hospitality platform while maintaining its independent spirit.
The purchase price for the 85 percent stake is $51 million, consisting of a potential make out payment. No realty is included in the acquisition. The transaction ought to be completed throughout the 3rd quarter of 2018.
The deal follows by one month AccorHotels’ letter of intent to obtain a 50 percent stake in Los Angeles-based sbe Entertainment Group for $319 million. The hospitality and domestic brand names of SBE include SLS, Delano, Mondrian, Hyde, The Originals and the Redbury Hotels. By the end of this year, sbe will run 25 hotels, comprising 7,498 spaces with a bulk in North America
The deals highlight AccorHotels’ technique to expand its offering in the high-end lifestyle hospitality sector.
In revealing the 21c Museum offer, Kevin Frid, chief operating officer, North and Central America for AccorHotels, said it reinforces the group’s footprint in The United States and Canada. It presently operates hotels in Kentucky, Bentonville, AK; Cincinnati, Durham, NC; Kansas City, MO; Nashville, TN; and Oklahoma City.
“We have an incredible opportunity to grow the 21c brand name, along with present MGallery into the North American market, constructing both brand name equities,” Frid said in a declaration. “This strategic acquisition marks a brand-new action in AccorHotels’ strategy.”
Contemporary art collectors Laura Lee Brown and Steve Wilson founded 21c Museum Hotels in 2006 in Louisville, KY. The chain takes its name from the pairing of 21st century art with historic buildings repurposed into hotels and restaurants.
The principle lines up with AccorHotels MGallery by Sofitel brand, a collection of boutique hotels tied to the literature and culture of the cities where they lie.
“We are positive that the special spirit of 21c will not just be protected, but will flourish within the MGallery collection of shop hotels,” Wilson said of the deal with AccorHotels.
Co-founders Brown and Wilson will retain a 15 percent stake in the company, and will stay carefully involved in providing innovative guidance and assistance of the unique mix of art, design and hospitality. 21c Museum Hotels will continue to be led by its president and president, Craig Greenberg, with corporate headquarters remaining Louisville.
International law firm Proskauer encouraged AccorHotels in its acquisition of a stake in 21c Museum Hotels.
Proskauer has represented AccorHotels for more than 20 years in a variety of deals amounting to around $10 billion, consisting of the sale of Motel 6 and related U.S. economy hotel operations for $1.9 billion; the $1.32 billion sale of Red Roof Inns; the more than $1.5 billion in sale-and-management-back in the U.S. for Sofitel and Novotel homes; and its contract to purchase sbe Entertainment Group.