AccorHotels has closed a $39 million deal to acquire 85 percent of 21c Museum Hotels, a hospitality management company that blends the museum and hotel worlds to create a new travel experience.
Founded in 2006, the 21c brand includes a multi-venue contemporary art museum, boutique hotels, and chef-driven restaurants. It currently has 11 properties under development across the United States.
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The company was started in Louisville by philanthropists and contemporary art collectors Laura Lee Brown and Steve Wilson. The pair had seen the region’s farmland and rural landscapes fall to development while historic buildings in downtown Louisville sat vacant.
Inspired by the idea that art can ignite urban revitalization and catalyze civic connection, Brown and Wilson rehabbed a series of 19th-century warehouses in Louisville to open the first 21c Museum Hotel. The success of the flagship property led to expansion.
Today the company operates 21c properties in Bentonville, Cincinnati, Durham, Kansas City, Lexington, Louisville, Nashville and Oklahoma City. Three more properties are in development in Des Moines, Miami, and Chicago.
21c Museum meanwhile is one of the largest contemporary art museums in the United States, and North America’s only collecting museum dedicated solely to 21st-century art.
Open and accessible 24 hours a day, seven days a week, 21c’s exhibitions and programs are free. Each property is designed to be a union of hospitality, thoughtful design, artistic expression and culinary creativity.
The 21c Museum Hotels are slated to join AccorHotels’ MGallery collection of boutique properties. The new acquisition will mark the introduction of the MGallery brand to the North American market.
The new agreement with AccorHotels allows 21c Museum Hotels to leverage a leading global hospitality platform while retaining its independence. The brand’s cofounders retain a 15 percent stake in the company and are to remain closely involved in providing creative guidance and support.
AccorHotels paid $39 million for its 85 percent stake in the company. No real estate was included in the acquisition. The transaction is expected to be completed during the third quarter of 2018.
“We are delighted to welcome 21c Museum Hotels as part of the AccorHotels family of brands, hence strengthening the Group’s footprint in North America in a very unique and promising niche,” said Kevin Frid, CEO, North & Central America, AccorHotels, said. “Together, we have a tremendous opportunity to grow the 21c brand, as well as introduce MGallery into the North American market, building both brand equities and further expanding the full range of unparalleled experiences for our guests.”
