AccorHotels has entered exclusive talks to buy concierge service provider John Paul, further beefing up its response to the challenges of Airbnb, Reuters reported.
Under the terms of the deal, AccorHotels – the world’s fifth-largest hotel group – will acquire 80 percent of John Paul for about US$150 million in equity and debt, with the company’s chief executive and founder David Amsellem keeping the remaining 20 percent.
“The acquisition of John Paul enables us to accelerate our global strategy to position the customer experience at the very heart of our initiatives,” said AccorHotels chief executive Sebastien Bazin.
Bazin has long warned that revenue from traditional hoteliers is under threat from companies like Airbnb, which have made it more popular to turn to accommodation other than hotels when on vacation or on business.
His response to the threat of the so-called sharing economy has been a flurry of acquisitions in the sector. In February, AccorHotels bought a 30 percent stake in Oasis Collections, an American marketplace for private rentals, and a 49 percent stake in Squarebreak, a French start-up offering
high-end rentals in France. In April, it bought British onefinestay, which specialises in renting out luxury private homes with hotel-style services.
Founded in Paris in 2007, John Paul merged with LesConcierges in 2015, creating a group with a consolidated turnover of US$70 million and a combined workforce of 1,000 people across North America, Europe, Africa, Asia and Pacific.