Accor SA is reportedly preparing to tap investment banks for a potential U.S. initial public offering of its Ennismore Lifestyle Group unit. This move signals the French hotel giant's intent to spin out the subsidiary, which owns the trendy Hoxton hotel brand.

The potential listing, if it proceeds, could unlock significant value for Accor and provide Ennismore with capital to fuel its expansion. Ennismore represents a significant portion of Accor's luxury and lifestyle portfolio, blending hotels with co-working spaces and residential elements.

Market observers will watch closely for the valuation Accor seeks and the investor appetite for a hospitality company with a focus on urban, design-led brands. A successful IPO could set a precedent for other hotel groups looking to leverage public markets for growth. The specific timing and underwriters have not been disclosed, but the engagement of banks indicates serious intent.