A Onefinestay property in London. The company’s owner AccorHotels is combining it with its other rental businesses. Onefinestay
AccorHotels has said it will combine its various private rental brands under its Onefinestay unit as it looks to add scale to the heavily loss-making business.
Travel Keys and Squarebreak, which AccorHotels is set to take complete ownership of, will be integrated before the end of the year. Both companies will retain their names but sit under the umbrella brand of Onefinestay.
Unlike Onefinestay, which focused on urban areas, Travel Keys and Squarebreak are primarily resort focused. The former has a strong presence in the Caribbean while the later has a European and North African portfolio.
As part of the reorganization, current Onefinestay CEO and co-founder Evan Frank is leaving the business. He has been in the job for less than a year since taking over from Greg Marsh. He will stay on until September. Taking his place is AccorHotels’ global integration officer Javier Cedillo-Espin.
The addition of new businesses will likely help AccorHotels boost revenue to a business that has struggled to grow in recent years.
The move will result in a quadrupling of Onefinestay’s portfolio from around 2,500 to 10,000.
AccorHotels wants the company to break even by 2019, but last year it lost $37.3 million. Achieving the goal will be a challenge given the increased competition in the sector. Airbnb signalled its upscale ambitions by buying Luxury Retreats earlier this year.
Cedillo-Espin said: “With this new step in consolidating our leadership position, Onefinestay now has a sound platform combining brand excellence, a vast and complementary offer and distribution efficiency. We are hugely excited about the global development potential for our network. Our guests are always asking for more places where they can enjoy our professional hospitality and concierge experience and the integration of these 3 innovative brands is the answer.”
Workspace Joint Venture
Meanwhile, AccorHotels is also set to dip its toe in the flexible workspaces market through a 50/50 joint venture with French company Bouygues Group.
By the end of 2017 the brand, Nextdoor, will have eight sites across France but the two groups aim to create 80 collaborative Nextdoor workspaces by 2022.
The move is the latest attempt by AccorHotels to branch out of the traditional hotel market into other areas. So far this has includes, among others, concierge services, events and private rentals.
The company plans to use its distribution channels to create a new customer base for Nextdoor.