AccorHotels has signed an agreement to acquire a majority stake of 21c Museum Hotels.
21c pushes the boundaries between museum and hotel to create a multi-venue contemporary art museum, boutique hotels and chef-driven restaurants, with 11 properties currently open and under development across the United States.
The boutique chain will join AccorHotels’ MGallery collection of boutique hotels, marking the introduction of the MGallery brand into the North American market.
Each MGallery property has its own unique design and story to tell, from Hotel Molitor Paris – MGallery and INK Hotel Amsterdam – MGallery to Hotel Muse Bangkok Langsuan – MGallery and Harbour Rocks Hotel Sydney – MGallery. 21c Museum Hotels will benefit from AccorHotels’ support in terms of development opportunities, increased sales and marketing exposure, and access to one of the largest distribution networks in the industry.
This agreement will allow 21c Museum Hotels to leverage AccorHotels’ leading global hospitality platform while retaining its independent spirit. Co-founders Laura Lee Brown & Steve Wilson will retain a 15 per cent stake in the company and will remain closely involved in providing creative guidance and support of the unique combination of art, design and hospitality that defines the 21c experience.
Corporate headquarters for 21c will remain in Louisville, Kentucky. The purchase price for the 85 per cent stake is $51 million, including a potential earn-out payment. No real estate is included in this acquisition, which should be completed during the third quarter of 2018.
“We are delighted to welcome 21c Museum Hotels as part of the AccorHotels family of brands, hence strengthening the Group’s footprint in North America in a very unique and promising niche,” Kevin Frid, Chief Operating Officer, North & Central America, AccorHotels, said.
“Together, we have a tremendous opportunity to grow the 21c brand, as well as introduce MGallery into the North American market, building both brand equities and further expanding the full range of unparalleled experiences for our guests. This strategic acquisition marks a new step in AccorHotels’ strategy of being the leading player in the Luxury and Lifestyle segment in North America.”
21c founder, Steve Wilson, added: “AccorHotels is one of the world’s leading hotel operators and will be a perfect partner and catalyst for 21c’s continued growth.
“We are confident that the unique spirit of 21c will not only be preserved but will flourish within the MGallery collection of boutique hotels.
“21c will continue to bring the work of today’s most dynamic and engaging contemporary artists to the public, and this partnership will be a tremendous boost for 21c’s continued development in North America and abroad. We are extremely excited to see what the future holds.”