Accor has entered into exclusive negotiations with Royal Holiday Group to acquire management agreements for 17 properties across Mexico, Argentina, Puerto Rico and the U.S. The deal covers 3,200 keys with six all-inclusive resorts in Mexico (1,660 keys) to be operated by Ennismore and 11 resorts and city hotels (1,540 keys) to be managed by Accor Premium Midscale & Economy Americas.
The total consideration of $79 million will be paid in phases and allocated to fund a $130 million renovation program across the portfolio over the next 30 months.
“This is an incredible opportunity for Accor to expand its Premium Midscale & Economy brands in new destinations throughout the region. This addition represents a significant milestone for us and we are committed to supporting and enriching the local communities where our resorts are located, fostering strong relationships and contributing to their sustainable development. Together with our new partners we look forward to creating unforgettable experiences for our guests and driving positive impact in these vibrant destinations,” said Thomas Dubaere, CEO Americas, Accor.
Three resorts in Cancun, Cozumel and Puerto Vallarta will be rebranded under the Rixos Hotels name following renovations. The remaining three all-inclusive properties in Cancun, Acapulco and Ixtapa will keep their current branding. The 11 other properties are scheduled to be reflagged under Swissôtel, Mercure, Mercure Living or ibis Styles.
Ennismore which manages the lifestyle and leisure segment for Accor confirmed the integration of the six resorts into its all-inclusive portfolio.
“Since Rixos joined Accor in 2017 it has more than tripled its network, reinforcing its position as a global leader in the luxury all-inclusive space with dynamic growth across the Middle East, Egypt and Turkey. This strategic acquisition marks Rixos’ bold entry into the Americas — a pivotal move into one of the world’s most promising all-inclusive markets. As Ennismore accelerates the global expansion of its all-inclusive portfolio the addition of these six resorts to our collective will significantly enhance our reach into the midscale segment unlocking new avenues for growth in key destinations worldwide,” said Gaurav Bhushan, co-CEO of Ennismore.
“These six new resorts represent a significant acceleration of our presence particularly in Mexico where the all-inclusive market is rapidly expanding. The arrival of Rixos, a pioneer in the all-inclusive space creates a clear opportunity to disrupt the traditional model by combining our founder-led lifestyle brands with creative design, destination-led culinary experiences and standout programming. With these six resorts we’re entering the fast-growing midscale all-inclusive segment allowing us to reach a broader demographic and expand into key resort destinations with a differentiated lifestyle-led approach,” said Phil Zrihen, head of Americas for Ennismore.
Ennismore has opened a regional office in Cancun to support operations across Mexico which also includes Our Habitas Tulum, SLS Cancun and Mondrian Mexico City.
The deal is expected to close in the second half of the year subject to regulatory approval including antitrust clearance.
