Accor buys franchises to 24 hotels following RBS-backed Ramada Jarvis buyout

Hotel group Accor has signed an agreement with the new owners of debt-ridden Ramada Jarvis that will see it extend its UK presence by another 24 Mercure-branded venues.

The agreement has been reached with Royal Bank of Scotland (RBS)-backed consortium Jupiter Hotels, which was formed at the end of last week in order to buy out troubled Ramada Jarvis, a move that secured the jobs of around 2,000 staff.

Accor’s deal with Jupiter will enable it to grow its share of the UK mid-scale market, adding 2,664 rooms to its portfolio and bringing its total to 68 Mercure-branded hotels. It is part of the group’s target to control a network of 300 hotels in the UK by 2015. The properties will be based in locations including London, Leeds, Manchester, Bristol, Brighton and Leicester.

Jean-Jacques Dessors, Accor UK’s chief operating officer, said: "This major franchise agreement is a significant milestone for Accor in the realisation of our ambitious growth targets.

"This expansion further demonstrates our commitment to building the Mercure hotel brand in the UK, which is such an important market for Accor. We will continue to pursue further franchise growth opportunities this year and beyond."

Jupiter Hotels was formed last week from a joint venture between RBS’s West Register property group and private equity firm Patron Capital. The partnership said it would inject £40m into the group. The takeover of safeguards the jobs of around 2,000 staff, although Jarvis’s board of directors will not transfer to Jupiter.

Have you registered with us yet?

Register now to enjoy more articles
and free email bulletins.

Register now
Already registered?
Sign in
Deadline extended for the C&IT Awards Americas

Deadline extended for the C&IT Awards Americas

As C&IT expands its reach globally, we've launched the C&IT Awards Americas to recognise the best in US events.

Unicorn Events closes due to COVID-19 challenges

Unicorn Events closes due to COVID-19 challenges

Agency MD Hannah Luffman says the business will close while it is still possible to pay staff in full.

How the UK government is supporting the hospitality and events sector

How the UK government is supporting the hospitality and events sector

Suggestions of an extended lockdown period are adding pressure to the events sector, says University of Derby's Brendan Moffett.

LIVE UPDATES: Cannes Lions goes from postponed to cancelled

LIVE UPDATES: Cannes Lions goes from postponed to cancelled

All the latest postponements and cancellations as the world deals with the spread of coronavirus.

Furlough: The new F-word

Furlough: The new F-word

Recently furloughed creative director Dave Leong explains the thinking that’s helping him navigate tricky times.

‘Virtual event providers have been opportunistic’

‘Virtual event providers have been opportunistic’

Think carefully about going virtual if your event can be postponed to later in the year, says Shaumik Saha from Stride Plus Events.

Events company helps build temporary hospital in Berlin

Events company helps build temporary hospital in Berlin

PRG's teams in Germany and the US are supporting health workers on the frontline in the fight against COVID-19.

How venues can rise to the challenge of coronavirus

How venues can rise to the challenge of coronavirus

Be flexible with your payment terms or cancellation policies, says Katie Roberts at National Museums Liverpool.

Dear C&IT: Mental health first-aiders could help events staff in need

Dear C&IT: Mental health first-aiders could help events staff in need

Two readers call for a greater focus on mental wellbeing in the events industry.

Zoom responds to privacy and security concerns

Zoom responds to privacy and security concerns

The video conferencing app is under scrutiny as its popularity surges during the coronavirus pandemic.