UK-based upmarket home rentals start-up Onefinestay is being taken over by French hospitality giant AccorHotels for €148 million.
Onefinestay offers 2,600 properties in cities including London, New York, Paris, Los Angeles and Rome.
Accor is to invest a further €64 million in the group to help it “scale internationally” with the aim of entering 40 cities around the world in the next five years.
It will operate as an independent business unit of Accor, with co-founder Greg Marsh staying on as chief executive.
The deal is seen as latest move by traditional hotel companies to address the threat posed by online competitors, from Airbnb to Expedia, and gain access to the growing sharing economy.
The French company said: “With its global presence and strong expertise in both operations and digital services, AccorHotels will support a new development phase of Onefinestay, accelerating its expansion across new key urban markets, providing it with its
powerful distribution capacity, strong customer base, incremental synergies and its know-how as a world-leading hotelier.
“As a result, Onefinestay has an ambitious strategy to expand to 40 new cities around the world over the next five years growing revenues tenfold.”
Marsh said: “AccorHotels’ investment in Onefinestay is a tremendous invitation for us to write the next chapter in our story.
“We share their deeply held conviction about the scale of the home rental opportunity, and greatly value their expertise and their practical and financial support as we plan the launch of more than 40 new markets over the next five years.
“With AccorHotels’ help, Onefinestay will become a globally recognised byword for exceptional experiences, extraordinary service, and handmade hospitality.”
Sébastien Bazin, chairman and chief executive of AccorHotels, said: “Onefinestay has successfully captured a sweet spot – a combination of needs that neither traditional hotels nor new actors of the sharing economy can meet.
“With the acquisition of this exceptional brand, unique operating model and outstanding management team, AccorHotels is developing as the worldwide leader of the serviced homes market.
“Today, together with our recent investments, we are accelerating 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.”