AccorHotels of Paris, France, said Tuesday that it had purchased an 85 percent stake in 21c Museum Hotels of Louisville, Kentucky, a contemporary art museum and boutique hotel chain that has a location in Bentonville.
AccorHotels, a multinational firm that manages hotels, resorts and vacation properties, said the purchase price for the stake is $51 million, including a potential earn out payment. The deal, which doesn’t include real estate, should be complete in the third quarter.
Kevin Frid, the chief operating officer of AccorHotels’ America operations, said the deal “marks a new step in AccorHotels’ strategy of being the leading player in the Luxury and Lifestyle segment in North America.”
21c co-founders Laura Lee Brown and Steve Wilson will retain a 15 percent stake in the company and “remain closely involved in providing creative guidance and support …” Craig Greenberg, the president and CEO of 21c, will remain in place, and the brand’s corporate headquarters will stay in Louisville.
AccorHotels’ operates the “MGallery” collection of boutique hotels, and 21c will join the lineup. There are MGallery properties in Paris, Amsterdam, Bangkok and Sydney. In all, AccorHotels has more than 4,500 hotels, resorts and residences in 100 countries.
21c operates eight museum hotels in Bentonville; Louisville; Cincinnati, Ohio; Durham, North Carolina; Lexington, Kentucky; Nashville, Tennessee, Oklahoma City and Kansas City. There are 21c hotels under development in Chicago, Miami and Des Moines.
Bentonville’s 21c opened in 2013.
Sign up for Daily E-news
