It was the buzzword on many hoteliers’ lips this year: Consolidation. When Marriott International officially absorbed Starwood Hotels & Resorts in September to create a 30-brand megamerger, the industry was aflutter over what it could mean for the industry as a whole. While that transaction may have been the most talked about this year, there was plenty of other M&A activity. Here is a look at the hottest deals that made consolidation a 2016 trend:
Eight months after announcing its intent to purchase Carlson Hotels, HNA Tourism Group closed the deal on Dec. 9. The acquisition of Carlson Hotels included the Quorvus Collection, Radisson Blu, Radisson, Radisson RED, Park Plaza, Park Inn by Radisson, Country Inns & Suites By Carlson brands, and the Club Carlson global hotel rewards program.
China’s Anbang Insurance Group closed the purchase of Blackstone Group’s Strategic Hotels & Resorts portfolio in September for an estimated $6.5 billion. The acquisition, comprising 16 hotels, included Essex House in New York.
On May 4, Kohlberg & Company, a private equity firm, announced it acquired Interstate Hotels & Resorts from Thayer Lodging and Jin Jiang International Hotels. The transaction included the 425 properties at which Interstate oversees operations. The dollar figure of the transaction was not released.
Red Lion Hotels Corporation closed its acquisition of Vantage Hospitality Group, based in Coral Springs, Fla., on Sept. 30. The initial aggregate price was $23 million in cash and 690,000 shares of the company’s common stock. Red Lion Hotels Corporation acquired approximately 1,000 franchise hotel agreements and added over 59,000 as a result of the acquisition.
In October, China Life Insurance invested in a stake of Starwood Capital Group valued at roughly $2 billion in U.S. hotels. The transaction includes 280 select-service hotels in 40 states.
On Dec. 2, sbe announced it closed on the acquisition of Morgans Hotel Group for $805 million. The deal more than doubled the number of hotels in sbe’s portfolio. In acquiring Morgans, sbe now owns the Delano and Mondrian brands, in addition to 13 domestic and international hotel management and franchise/licensing agreements.
Outrigger Hotels and Resorts announced in November that it had been purchased by an affiliate of KSL Capital Partners. The transaction included all 37 of Outrigger’s multi-branded hotels, condominiums, and vacation resort properties.
AccorHotels was busy on the acquisition front in 2016: It officially acquired FRHI Hotels & Resorts and its three luxury hotel brands, Fairmont, Raffles, and Swissôtel in July. The company also invested in Banyan Tree Holdings in an effort to collaborate on developing and managing Banyan Tree-branded hotels.
