(Bloomberg) -- Accor SA, Europe’s biggest hotel operator, agreed to buy onefinestay for 148 million euros ($168 million) to expand in the luxury serviced-home market.
Accor plans to invest a further 64 million euros to grow onefinestay internationally, the Paris-based company said in a statement Tuesday. It will remain an independent unit within Accor.
“Onefinestay has successfully captured a sweet spot: a combination of needs that neither traditional hotels nor new actors of the sharing economy can meet,” Accor Chief Executive Officer Sebastien Bazin said in the statement. “We are accelerating the transformation of our business model to capture the value creation linked to the rise of private rentals.
Since becoming CEO in 2013, Bazin has cut costs, expanded in China, adding luxury properties and competing more aggressively online. In December, Accor agreed to buy the owner of the upscale Fairmont, Raffles and Swissotel brands for about $2.9 billion in shares and cash.
Onefinestay, founded in 2010, operates 2,600 properties in cities including London, New York, Paris, Los Angeles and Rome, according to the statement. The company plans to expand to 40 more cities over the next five years while growing revenue tenfold.
To contact the reporter on this story: Ross Larsen in London at firstname.lastname@example.org. To contact the editors responsible for this story: Neil Callanan at email@example.com, Elisa Martinuzzi, Simone Meier
©2016 Bloomberg L.P.