Hospitality Design - May 2016 - (Page 117)

perspectives business sense mergers By Kathleen Kervin and Stacy Shoemaker Rauen Graphic by Ashlie Brazelton Starwood Hotels & Resorts Marriott International "Marwood" Pipeline Pipeline Pipeline 437 1,458 1,895 98,728 234,734 333,462 1 OPEN OPEN OPEN 1,372 4,336 5,708 384,244 747,076 1,131,320 AccorHotels FRHI Hotels & Resorts Pipeline Pipeline AccorHotels + FRHI Hotels & Resorts Pipeline 352 46 398 71,196 14,089 85,285 OPEN OPEN OPEN 3,869 118 3,987 521,879 43,453 565,332 Commune Hotels + Resorts Destination Hotels & Resorts Pipeline Destination Hotels & Resorts is a U.S.-based management company. It does not build or own hotels, it is purely a manager of mostly unbranded hotels. Pipeline OPEN OPEN 10 2,027 OPEN Commune Hotels + Resorts + Destination Hotels & Resorts 10 2,027 38 51 89 5,470 12,114 17,584 *Numbers provided by Lodging Econometrics; pending final transactions In Construction Rooms SIZE MATTERS Bigger is seemingly better for hotel brands and design firms Airlines. Major corporations. Now hotel companies are jumping on the merger bandwagon. "Most believe in the notion that 'size matters,'" explains Chad Sorensen, managing director of asset management firm CHMWarnick. Marriott International's acquisition of Starwood Hotels & Resorts, for example, was an opportunity for scale, he says, while AccorHotels buying Fairmont Raffles Hotels International (FRHI) provided the Paris-based company greater North American presence and a luxury brand. "Acquisitions also provide a quick entrance into global markets and expanded international distribution," he adds. Many factors are still left to be determined-including the completion of the transactions and how the brands will ultimately shake out (which ones go, and which ones stay)-but there are pros and cons for these unions, especially for the owners. These large brands now have a greater ability to "combat threats to the industry, including Google, Airbnb, and the countless other disruptors," he explains. But a megamerger like Starwood and Marriott is "a lot of brands under one umbrella," Sorensen adds. Owners who have assets in saturated markets are anxiously awaiting what this means for them, which he says could take years, not months, to figure out. "That said," he adds, "in the near term, this is likely to provide a competitive advantage to companies like Hilton as they can stay laser-focused on their corporate and operational strategies." And for travelers, "The most obvious and widely talked about Hotels May 2016 117

Table of Contents for the Digital Edition of Hospitality Design - May 2016

Hospitality Design - May 2016
Online TOC
From the Editor
People: HD Summit
People: CitySCENE Atlanta
Business Sense: Mergers
Sustainable Studio: Toscana Resort Castelfalfi
Inspiration: Zaha Hadid Superyachts
Trends: Airport Lounges
Trends: Extended Stays
Places: Austin
Places: London
Interview: Brad Wilson
Interview: Chip Conley
Interview: Alan Faena
Interview: Neil Jacobs
Interview: Pacifica Hotels
5 Questions for Dan Flannery
Profile: Thom Filicia
Trends Custom Art
ICFF Preview
HD Expo Preview
From the Show Director
Conference Highlights
Show Highlights
Places: Las Vegas
Special Feature: Los Angeles
The Camby Hotel + Axiom Hotel
Seamarq Hotel
The Charmant Hotel
Soho Farmhouse
Generator Amsterdam
Ovolo Woolloomooloo
Rivertown Lodge
Casa Bonay
Belmond Eagle Island Lodge
Les Bains
Talde Miami Beach
Ad Index
Back Space

Hospitality Design - May 2016