Qatar First Bank (QFB) will finance a Qatari consortium of investors that aims to participate in the acquisition of a 10.8 percent stake in Ennismore, one of the world’s largest and fastest growing lifestyle hospitality company majority owned by international hospitality conglomerate group, Accor.
QFB will finance the purchasing consortiums investment vehicle by providing $21 million of Sharia-compliant financing. The Transaction closing is expected to occur in the second semester of 2022 and is subject to the employee consultation process, customary regulatory authorizations and closing conditions. The deal comes at a time post pandemic, where lifestyle segments are demonstrating a stronger performance than the overall market.
“The time is ripe for a bold move into the international hospitality and tourism market that will further cement Qatar’s strategic place as a key player in this important sector. With the global tourism and lifestyle recovery on track, we are pleased to finance consortium of Qatari investors, who seek to capture a share of the international market and guarantee more diversification.”
The proposed deal would command a price 18 times the 2023 forecasted earnings before interest, taxes, depreciation, and amortization of the combined Ennismore group. In comparison, Accor Group as a whole currently has an enterprise value of 4.23 times its revenue.
QFB is the first independent Sharia compliant bank authorized by the QFC Regulatory Authority (QFCRA) and a listed entity on the Qatar Stock Exchange (QSE).
Ennismore is a year-old joint venture between Accor and Mr. Sharan Pasricha, a hotel entrepreneur, founder and co-CEO of Ennismore.