If you can’t beat them, join them. Accor, one of the world’s biggest hotel groups, has moved dramatically into luxury holiday rentals, with the acquisition of onefinestay for €148m plus a commitment to invest a further €64m to scale the business, founded just six years ago.
onefinestay will operate as a separate business unit within the Accor empire and continue to be led by CEO and co-founder Greg Marsh and the key management team.
Growth is very much on the agenda with aggressive plans to grow onefinestay’s revenue, which has been kept secret, by 1000% over the next five years.
At present onefinestay exclusively manages 2600 properties in London, New York, Paris, Los Angeles and Rome, providing five-star service in “hand-picked” private homes and apartments.
The plan is to expand into 40 more cities by 2021.
Accor’s Chairman and CEO, Sebastien Bazin, says that onefine stay has found a “sweet spot” outside the ambit of traditional hotels.
“onefinestay has successfully captured a sweet spot: a combination of needs that neither traditional hotels nor new actors of the sharing economy can meet,” Mr Bazin said.
“We are accelerating our the transformation of our business model to capture the value creation linked to the rise of private rentals and also strengthening our presence in the luxury market with a complementary offer.”
Greg Marsh from onefinestay says the acquisition “is a tremendous invitation for us to write the next chapter in our story” and “we share deeply their conviction about the scale of the home rental opportunity”.
onefinestay’s business model is to manage, market and let selected “private homes” while the owners are out of town.