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Destination Hotels and Commune Hotels & Resorts MergeJanuary 22, 2016 By: Newswire
|Photo by Freeimages.com/Mike Johnson|
Commune Hotels & Resorts, the international lifestyle hotel management company comprising Joie de Vivre Hotels, Thompson Hotels, tommie and Alila Hotels & Resorts, and Destination Hotels, an operator of independent hotels, resorts and residences in the United States, have announced that they have merged.
The combined company will be based in Denver, Colorado, with offices in San Francisco, New York, Singapore and Shanghai and will be under the leadership of Jamie Sabatier and Niki Leondakis. In addition, hospitality veterans John Pritzker and Robert Lowe, Jr. will serve as co-chairmen of the combined company.
The two companies said the merger creates an opportunity for two successful and growing companies to leverage their respective strengths and competitive advantages to better compete in a dynamic industry, and that the combined company will drive superior financial and investment performance for property owners and will offer greater options to guests and career opportunities for employees.
Geographically, Commune and Destination operate in highly complementary markets, and with very little overlap, the two companies said. In addition, through the merger, each company significantly strengthens a key portion of its portfolio: Commune brings a broader set of urban offerings across North America, Asia and Europe, while Destination contributes a wide array of resort properties in premier destinations from coast to coast. The respective customer bases are also complementary, giving each company immediate access to new individual travelers and groups focused on the independent and lifestyle market. Together, Commune and Destination will have a larger sales, marketing and revenue management platform and distribution system through which to drive enhanced property revenues and performance.
Commune and Destination said they are committed to maintaining individuality across each property and brand. The combined company will manage over 90 hotels and resorts in seven countries with approximately $2 billion of total property revenues under management, and will look to opportunistically broaden the geographic reach of its brands both domestically and internationally in urban and resort markets.
The merger encompasses hotel management operations and brands of both companies.