PARIS (Reuters) - AccorHotels (PA:ACCP), Europe's largest hotel group, said on Tuesday it bought British high-end serviced home rental company onefinestay as it fights the rising challenge of online home-sharing company Airbnb and further expands its luxury footprint.
The world's fifth-largest hotel group, undergoing a reorganisation initiated by Chief Executive Sebastien Bazin, said it paid 148 million euros (118.3 million pounds) for onefinestay and pledged to invest a further 64 million to help the company grow worldwide.
Onefinestay, which was launched in London in 2010, has a portfolio of 2,600 properties in London, New York, Paris and Los Angeles, AccorHotels said in a statement.
With the help of AccorHotels, onefinestay plans to expand to 40 new cities around the world over the next five years, growing revenue tenfold from around 15 million pounds in 2015.
Onefinestay will remain an independent business unit within AccorHotels and will continue to be led by co-founder Greg Marsh and his management team, AccorHotels said.
Bazin has warned that revenue from AccorHotels and other traditional hoteliers was under threat from Airbnb and booking websites. His response has been to invest in digital, as well as expanding the range of food and drinks offerings.
In February, AccorHotels announced the acquisition of a 30 percent stake in Oasis Collections, an American marketplace for private rentals, and of a 49 percent stake in Squarebreak, a French start-up offering high-end rentals in France.
AccorHotels has also been expanding its reach in the luxury hotel segment after agreeing a deal for FRHI, the owner of luxury hotels such as London's Savoy last year.