Commune, Destination merger creates scalable boutique operator

The Wall Street Journal is reporting that Commune Hotels & Resorts, which includes the Thompson Hotels and Joie de Vivre brands, and Destination Hotels have completed a merger, bringing together 92 hotels in seven countries with about $2 billion in property-management revenue.

Neither the total value for the new company nor the ownership structure was disclosed, but the combined entity will reportedly be based in Denver, where Destination has its headquarters.

FREE DAILY NEWSLETTER

Like this story? Subscribe to IHIF!

The hospitality industry turns to IHIF International Hotel Investment News as the must-read source for investment and development coverage worldwide. Sign up today to get inside the deal with the latest transactions, openings, financing, and more delivered to your inbox and read on the go.

The new company brings together private-equity executive John Pritzker, owner of Commune, and Robert Lowe, CEO of real-estate firm Lowe Enterprises, the parent company of Destination.

The combination also gives the company properties in both city centers (Commune) and resort locales (Destination).

"It was a natural thing to ask what we can do if we came together," Niki Leondakis, the current CEO of Commune, told The Wall Street Journal.

Leondakis' work with the new, yet unnamed company will focus on property management, while Destination President Jamie Sabatier will be in charge of integrating the two companies and corporate operations. There still has been no decision on who the CEO of the new company will be.

The merger comes at a time of consolidation within the hospitality industry. In November, Marriott International agreed to pay more than $12 billion for Starwood Hotels & Resorts Worldwide; last month AccorHotels agreed to acquire FRHI Holdings, which includes the Fairmont Hotels brand, in a deal valued at more than $3 billion; and, today, Carlson said it was exploring options, including a possible sale or merger of its hotel company, Carlson Rezidor Hotel Group.

Suggested Articles

Easyhotel said that it would focus on France and Spain as part of its “ambitious strategy” for growth.

HVS Brokerage & Advisory, Milmark Hotel/Motel Investments and Marcus & Millichap arranged sales in Texas, Wisconsin and Florida.

Fosun is thought to be applying for an Atol licence as it plans to relaunch Thomas Cook as an online travel agent.