UK hospitality company Ennismore is looking to raise several hundred million dollars to bring more of its luxury hotels to the U.S.

Executives are in preliminary talks with potential investors, though no final decisions have been made, sources familiar with the matter told Bloomberg. The expansion could bring the London-based firm’s value to at least $3B.

Ennismore inked a deal in 2020 that merged its portfolio with French hotel giant Accor. The venture included 73 properties, specifically lifestyle brands. Accor would retain majority ownership of Ennismore should it raise the funds for U.S. expansion, Bloomberg reported.

The firm operates several hotel chains in the U.S., including Hyde and Mondrian. It has about 100 properties in its development pipeline, according to Bloomberg.

U.S. hotels have made a comeback after demand fell to historic lows at the height of the pandemic. A steady stream of leisure travelers and higher room rates helped companies maintain profitability, with luxury hotel operators enjoying a particularly fruitful 2023.

“Luxury and upper-upscale guests, what we call the mass affluent customer, have really been prioritizing spending on experiences over material goods,” KSL Capital Partners partner John Ege told Bisnow in a previous interview. “And we've seen that trend continue.”

There were 85 branded luxury hotels in the U.S. construction pipeline comprising 17,838 guest rooms as of mid-January, according to Lodging Econometrics data reported by Hotel Management.

Hotel juggernauts such as Marriott International have doubled down on signing contracts for luxury properties, while Hilton recently partnered with Small Luxury Hotels of the World to expand its portfolio of high-end properties.