From the desks of the Hotel News Now editorial staff:
- Hyatt announces deal to acquire Two Roads
- Strikes continue at Marriott hotels
- Hoteliers on how to work with OTAs
- Gun policies inconsistent across US hotels
- A look at consolidation in the hotel industry
Hyatt announces deal to acquire Two Roads: Hyatt Hotels Corporation announced Monday morning that it has signed an agreement to acquire Two Roads Hospitality for a base price of $480 million, “with the potential for Hyatt to invest up to an additional $120 million in the aggregate, contingent on the outcome of certain terms to be individually defined after closing,” according to a news release.
“Hyatt and Two Roads share a commitment to genuine care and delivering distinctive experiences to discerning travelers. We are pleased to be coming together, and are dedicated to learning from each other and taking the best of both organizations forward,” Mark Hoplamazian, president and CEO of Hyatt, said in the release.
The transaction is expected to close later this year, and with the closing, “Hyatt will create a dedicated lifestyle division as a catalyst to bring together the operations of Two Roads and Hyatt’s lifestyle brands.”
A company spokesperson for Hyatt told Hotel News Now company officials were not commenting on the deal. HNN also reached out to Two Roads for comments, but had not heard back as of press time.
Strikes continue at Marriott hotels: More union workers employed at Marriott International hotels went on strike over the weekend, according to multiple news outlets.
The latest strike started Sunday morning at the Westin Book Cadillac hotel in Detroit where 160 workers from Unite Here Local 24 went on strike.
Hoteliers on how to work with OTAs: Hoteliers have accepted that online travel agencies aren’t going away, so the focus for panelists at last week’s Direct Booking Summit was to find ways to work with them, HNN’s Robert McCune reports.
Ted Schweitzer, who served as SVP of digital commerce at La Quinta Holdings before its hotel management and franchise business was absorbed into Wyndham Hotels & Resorts, said “loyalty isn’t a virtue hoteliers can expect in an OTA.”
“OTAs are amazing for acquisition, and they’re not going anywhere, but they do like to sleep around. They’re not the most loyal,” he said on a panel discussion about “Metasearch in 2018.”
Gun policies inconsistent across U.S. hotels: There’s an inconsistency with gun policies at U.S. hotels, even those from the same brand family, which has caused confusion on property, The New York Times reports.
The Times reports that, “as Americans struggle to balance competing ideas of safety and gun rights, a hotel industry that takes in $245 billion on yearly sales is caught in the middle.” The stakes of the debate were raised last year with the shooting from the Mandalay Bay Resort and Casino in Las Vegas.
Times reporters looked into gun policies across big hotel chains, and the main conclusion is that “travelers should know that if they want to know the rules at the hotel where they will be staying, they need to call the location itself—regardless of local law, whether you have a permit or if the property is part of a chain—and ask,” according to the news outlet.
A look at consolidation in the hotel industry: JLL’s Real Views took a look at consolidation in the hotel industry, which continues to occur and looks like it is here to stay, according to the report.
“From megamergers to niche acquisitions, consolidation is recalibrating the balance of power in the hotel industry as established operators get bigger and smaller brands seek new ways to differentiate themselves,” according to the article.
Tony Ryan, managing director of global mergers and acquisitions at JLL, said that acquisitions are expected to become more targeted.
“M&A at the top means smaller management companies are spurring the growth of different, sometimes hybrid hospitality offerings,” he said in the report. “That’s where the interest among millennials seems to be; some larger operating groups may look to get involved in that. But you need a unique DNA to accomplish that edgy, local feel.”
Compiled by Danielle Hess.