Accor to Acquire 85% of 21c Museum Hotels
AccorHotels has signed an agreement to acquire 85% of 21c Museum Hotels, an award-winning hospitality management company pushing the boundaries of the museum and hotel worlds to create a new kind of travel experience.
21c combines a multi-venue contemporary art museum, boutique hotels and chef-driven restaurants, with 11 properties currently open and under development across the United States.
21c Museum Hotels was founded in 2006 in Louisville by philanthropists and contemporary art collectors Laura Lee Brown and Steve Wilson. The pair had seen the region’s farmland and rural landscapes fall to development while the historic buildings of Louisville’s downtown sat vacant. Inspired by the idea that art can ignite urban revitalization and catalyze civic connection, Brown and Wilson rehabilitated a series of 19th century warehouses in Louisville’s downtown arts and theater district to open the first 21c Museum Hotel.
The success of the Louisville flagship created opportunities for expansion; today the company operates eight 21c properties in Bentonville, Cincinnati, Durham, Kansas City, Lexington, Louisville, Nashville and Oklahoma City, with 3 more in development in Des Moines, Miami and Chicago.
21c Museum is one of the largest contemporary art museums in the United States, and North America’s only collecting museum dedicated solely to art of the 21st century. Open and accessible 24 hours a day, 7 days a week, 21c’s exhibitions and programs are free to the public. Each property remains an innovative union of genuine hospitality, thoughtful design, artistic expression and culinary creativity.
21c Museum Hotels will join AccorHotels’ MGallery collection of boutique hotels, marking the introduction of the MGallery brand into the North American market.
This agreement will allow 21c Museum Hotels to leverage AccorHotels’ global hospitality platform while retaining its independent spirit. Co-founders Laura Lee Brown & Steve Wilson will retain a 15% 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. 21c Museum Hotels will continue to be led by President & CEO Craig Greenberg. Corporate headquarters for 21c will remain in Louisville, Kentucky.
The purchase price for the 85% stake is $51 million, including a potential earn out payment. No real estate is included in this acquisition. The transaction should be completed during the third quarter of 2018.
21c founder, Steve Wilson, said, “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.”
source: Travel News Asia
