Accor's lifestyle hospitality arm Ennismore has reported strong growth this year, achieving approximately 20% net unit growth thanks to momentum in the Middle East, the Americas and other regions. The group, which operates brands including SLS, Mondrian, Delano and The Hoxton, has plans for an average of 30 to 40 hotel openings each year. Hotels editor Christina Jelski sat down with Ennismore founder and co-CEO Sharan Pasricha during ILTM Cannes to talk about the company's trajectory, unique approach to loyalty and all-inclusive strategy.
Sharan Pasricha
Q: Can you share some expansion highlights?
A: It's been an incredibly strong year, and we're finding that our brands are resonating incredibly well. The Middle East has been a great story for us. We've had lots of success with the Delano, which opened several weeks ago in Dubai. It's great to see that brand have a resurgence, and we're excited to have it in Miami again soon. That's under renovation, and we haven't announced that opening date yet, but at some point in the next 12 to 18, months, we'll have it back in South Beach where it should be. The Hoxton has eight hotels in the pipeline, including a handful of hotels in the U.S. that are opening in the next 12 to 18 months.
The U.S. has always been a market that I've felt has been under-penetrated for Ennismore, despite the U.S. having had such legacy and history with brands like SLS, Mondrian, Delano and Morgans. So it's great to now see some of our brands finding beautiful homes in the U.S. and surrounding areas.
Q: You're also making inroads with all-inclusives. What's the strategy there?
A: The SLS Playa Mujeres in Mexico, near Cancun, will be that brand's first all-inclusive. We learned the all-inclusive business through our partners, Rixos, who really pioneered luxury inclusive, and we've used their playbook in thinking about how you can build great programming around entertainment and all-inclusive for families, but we've added the lens of lifestyle alongside it. So, think everything you'd expect from SLS, but within an exciting, more inclusive and family-friendly environment.
Q: Ennismore launched its subscription-based loyalty program, Dis-loyalty, in 2023. How has that progressed since its debut?
A: The idea that you can go to one of our Dis-loyalty hotels and have a free barista-made coffee on a daily basis, the fact that we showcase our new hotels by offering 50% off within the first three months of their opening, and the fact that you can stay in one of our hotels for the first time and get 20% off has been a great success. And we've just launched our app this year, which has been amazing. Our subscriptions have grown, our utilization has grown, the bookings across our hotels have grown and the feedback we're getting from our users has been incredibly positive.
Q: What role does food and beverage play in your business model and strategy?
A: North of 60% of our revenue is generated outside of the hotel room. We take creative storytelling, programming and F&B very seriously, and I've always spent a disproportionate amount of my time thinking about building restaurants in our hotels and what would work for the locals.
That does add a layer of complexity, but I think it leads to a lot of the success that we've had within the world of lifestyle. And if you've only got one restaurant in your hotel, you've got to balance the needs of the everyday traveler, someone who might eat there twice or thrice in a week, with creating a culinary destination that becomes a local hot spot in its own right. And, of course, every city you go to has a different context. The Italians love to stand and have an espresso, for example. Therefore, in Italy, you've got to kind of build your product and offering around that.