onefinestay acquired by Accor Hotels

AccorHotels agreed in April 2016 to acquire the entire share capital of onefinestay from its shareholders, in cash, at an enterprise value of €100–350M, and committed a further 64 million euros to fund the company’s international expansion. Founded in London in 2010, onefinestay rented private homes to travellers with the services of a hotel attached. Owners handed over their houses and flats while they were away, and the company photographed and listed them, screened the guests, met them on arrival, provided round-the-clock assistance during the stay, and handled cleaning, maintenance and insurance. Guests were received in person rather than through a key box, and found the property prepared as a hotel room would be. At the time of the transaction it managed 2,600 properties on an exclusive basis in London, New York, Paris, Los Angeles and Rome, a portfolio whose underlying real estate was worth several billion pounds. The model differed from both hotels and the home rental platforms then emerging. Unlike the latter, onefinestay did not merely put owners and guests in contact: it took charge of the property, controlled its presentation and guaranteed the standard of the stay, which allowed it to address travellers who would otherwise have booked a luxury hotel. Unlike a hotel operator, it owned none of the buildings and carried no construction or lease commitments. onefinestay was to continue as an independent business unit within AccorHotels, with founder Greg Marsh and his management team remaining in charge. The additional capital was earmarked for opening more than forty new markets over five years. AccorHotels operates and franchises hotels worldwide, from economy to luxury, but had no presence in private accommodation. The purchase gave it a position in the serviced homes segment, and a type of stay its own brands could not offer to guests travelling in groups or for extended periods, at a time when home rental platforms were drawing travellers away from hotels.