Consolidation in the global lodging industry continues, as illustrated by this press release revealing the agreement that Carlson Hotels, Incorporated — which was founded by Curt Carlson in 1938 — is to be acquired by HNA Tourism Group Company, Limited.
Carlson Hotels Acquired by HNA Tourism Group
No details have been given at this time as to the financial information associated with the acquisition; nor has a specific timeline of the completion of the acquisition yet been released publicly; although the transaction is is expected to be completed in the second half of calendar year 2016 — subject to the receipt of regulatory approvals and other customary closing conditions. The terms of the agreement were already unanimously approved by the board of directors of Carlson.
“The combination of HNA Tourism Group and Carlson Hotels to have robust presence in international hospitality, with increased ability to accelerate growth, expand key brands, and strengthen its best-in-class hospitality experience for its guests”, according to the press release. “The combination of HNA Tourism Group and Carlson Hotels will have increased ability to accelerate growth through investments in areas such as digital, owned assets in major gateway cities, building of Radisson RED and other new brands.”
David P. Berg — who is the current chief executive officer of Carlson Hospitality Group Incorporated — will remain as the chief executive officer of the new organization; and the headquarters of Carlson Hotels will remain in Minnetonka, Minnesota.
“Since the closing of the Transaction will result in an indirect change of control in Rezidor, HNA Tourism Group would, under Swedish takeover rules, be obliged to launch a mandatory public tender offer for the remaining approximately 48.7 percent of Rezidor, within four weeks after the closing of the Transaction if the ownership in Rezidor is not sold down below 30 percent”, according to the aforementioned press release. “Hence, HNA Tourism Group may, during these four weeks following closing of the Transaction, decide whether to launch a mandatory public tender offer for the remaining shares in Rezidor or sell down its ownership in Rezidor below 30 percent.”
About the Companies
Carlson Hotels is one of the largest hotel groups in the world, with approximately 1,400 hotels in operation and under development; and greater than 220,000 rooms and a footprint spanning 115 countries and territories. Carlson Hotels holds an ownership stake of 51.3 percent in The Rezidor Hotel Group, which is based in Brussels; and is the master licensee for the portfolio of brands of the company in Europe, Middle East and Africa. Carlson Hotels and its brands employ 90,000 people worldwide; and the brands include:
- Quorvus Collection
- Radisson Blu
- Radisson
- Radisson RED
- Park Plaza
- Park Inn by Radisson
- Country Inns & Suites By Carlson
- The global Club Carlson frequent guest loyalty rewards program
Founded in Beijing in March 2007, HNA Tourism Group Company, Limited is a division of HNA Group Company, Limited, which is a Fortune Global 500 company and operates approximately 500 hotel properties comprised of nearly 90,000 rooms in key cities in China as well as other parts of the world; and its brand portfolio ranges from luxury upscale to budget segments catering to both business and leisure travelers. HNA Tourism Group Company, Limited is a global integrated tourism conglomerate engaged in the aviation, hospitality, tourism, finance and online services industries as well as other sectors; and it owns greater than 20 subsidiaries, which include the following concerns:
- Capital Airlines
- Deer Jet
- Tangla Hotels and Resorts
- Caissa Touristic
HNA Tourism Group Company, Limited is also a majority investor in global travel and hospitality brands, which include the following concerns:
- NH Hotels
- Red Lion Hotels
- PVCP Group
Summary
What these changes mean to you and other frequent travelers is anyone’s guess; but in the meantime, if you are a member of the Club Carlson frequent guest loyalty program, business continues as usual until further notice; and be sure to register for this current promotion from Club Carlson where you can earn up to 50,000 bonus points.
