The buying spree of French group AccorHotels continues with its latest purchase – a 85% stake in 21c Museum Hotels headquartered in Louisville, Kentucky.
The US$51 million deal will see the American hotel chain, which combines art museum with boutique accommodation and chef-driven restaurants, join the MGallery collection, introducing the luxury brand into the North American market.
Kevin Frid, AccorHotels’ chief operating officer, North & Central America, said the acquisition “marks a new step in AccorHotels’ strategy of being the leading player in the luxury and lifestyle segment in North America,” noting that this is “a very unique and promising niche.”
Under the agreement, 21c Museum Hotels’ co-founders Laura Lee Brown and Steve Wilson will retain a 15% stake in the company and will remain closely involved in providing creative guidance and support to the hotels’ concept.
President and CEO Craig Greenberg will continue to lead to the company, and the corporate headquarters will remain in Louisville.
The acquisition, expected to be completed in the third quarter of 2018, will include potential earn out payment, and excludes real estate.
21c Museum Hotels was founded in 2006 in Louisville by Brown and Wilson, both philanthropists and contemporary art collectors. Inspired by the idea that art can ignite urban revitalisation and catalyse civic connection, the husband and wife team rehabilitated a series of 19th century warehouses in Louisville’s downtown arts and theatre district to open the first 21c Museum Hotel.
The first Museum Hotel in downtown Louisville is also a multi-venue contemporary art museum. (Image credit: 21c Museum Hotels)
Today the company operates eight 21c properties across the US – in Bentonville (Arkansas), Cincinnati (Ohio), Durham (North Carolina), Kansas City (Missouri), Lexington (Kentucky), Louisville (Kentucky), Nashville (Tennessee) and Oklahoma City (Oklahoma). Three more are in development in Des Moines (Iowa), Miami (Florida) and Chicago (Illinois).
“We are confident that the unique spirit of 21c will not only be preserved, but will flourish within the MGallery collection of boutique hotels,” said Wilson on the acquisition. “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.”
• Featured image (21c Museum Hotel Bentonville, Arkansas) credit: 21c Museum Hotels
