Radisson Hotels owner exploring strategic alternatives
22 January 2016
Carlson Cos Inc, owner of Radisson Hotels and other hotel brands, is exploring strategic alternatives for its hotel business, including a merger, partnership, or sale, The Wall Street Journal yesterday reported, citing people familiar with the matter.
Radisson, Quorvus Collection, Radisson Blu, Radisson RED, Park Plaza, Park Inn by Radisson and Country Inns & Suites By Carlson are part of Carlson Rezidor Hotel Group, which is owned by Carlson Cos.
Carlson Rezidor Hotel Group also owns Carlson Wagonlit Travel, a business travel management firm.
Minnesota-based Carlson Rezidor has asked its banker Morgan Stanley to run the process, the report said.
Carlson Rezidor has more than 1,370 hotels in operation and under development in over 110 countries and nearly 172,234 rooms currently operational worldwide, making it one of the world's largest privately held hotel chain.
Its global sales in 2014 were $7.8 billion.
Mergers and acquisitions in the hotel industry have recently been on the upswing after a few years lull. Last year, mergers and acquisitions totaled $25.7 billion in this sector.
In November last year, Marriott International agreed to buy Starwood Hotels & Resorts Worldwide for $12.2 billion, a move designed to create the world's largest hotel company with more than a million rooms (See: Marriot becomes world's largest hotelier with $12.2-bn Starwood acquisition).
European hotel chain, AccorHotels signed a deal in December to acquire Toronto-based FRHI Group, owner of luxury hotels including London's Savoy and New York's Plaza, in a cash-and-share deal worth $2.9 billion.