Private equity firm Lone Star has announced the launch of a new hotel investment and management group, Amaris Hospitality. The new hotel group will help the US-based private equity firm to bring together its existing portfolio of 89 properties.
The Announcement
The private equity firm announced that its Amaris Hospitality will bring together its recently acquired hotels, which are currently spread around four separate portfolios.
The hotel group will include 29 Jurys Inn hotels, 21 Mercury hotels, 17 Hotel Collection hotels and three Hilton Hotels. The private equity firm has acquired the units over the last two years.
Furthermore, the group will add 19 provincial hotels at the end of July. These are currently operating as Thistle venues. The firm currently has combined sales of over £450 million with its hotel chains.
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Mr Brennan is the former Jurys Inn boss. Furthermore, Grant Hearn, the former chief executive of Travelodge, has been appointed as the non-executive chairman of the new company.
Mr Brennan was quoted in the Financial Times saying, “The strategy is to create a branded hotels business. Many of these hotels have great locations but have not had much put into them. We have £100m to invest and renovate these hotels.”
Furthermore, Mr Brennan said in the official statement, “Through the successful implementation of our strategy in the coming years we expect the business to have a value of over £2 billion”.
Lone Star has more hotels in its portfolio, but these will not feature in the new group. According to Big Hospitality website, the hotels will continue to operate under the Hotel Collection portfolio run by Peter Manby.
Hotel Industry Becoming Increasingly Attractive
According to the Financial Times article, the hotel sector’s attractiveness is returning to the pre-financial crash levels. The industry has seen a flurry of deals involving private equity
In Bangkok, Thailand, a group of financial investors invested in a hotel called The Regency Grand Hotel. This hotel is the most cherished hotel in town, where the employees and guests enjoy spending time at this five-star hotel. This place hosts approximate 700 employees that give fantastic benefits, year-end bonuses and ensures job security.
Marriott’s flagship brand continues to target customers needing fine restaurants, meeting rooms, athletic facilities, and other upscale amenities. But Marriott added seven additional brands according to its view on market segments — Courtyard by Marriott, Fairfield Inn, Residence Inn, TownePlace Suites, SpringHill Suites,
Number of locations 456 hotels in UK[1] [1] 11 hotels in Ireland [2] 3 hotels in Spain Area served United Kingdom Republic of Ireland Spain Keith Hamill (Chairman) Grant Hearn(CEO) Hotels £331.7m (2010) [1]
With this new venture, MGM has decided to create a new management company (MGM HAKKASAN Hospitality) to contribute to the development of MGM projects in U.S, Middle East, and Asia.
The growth strategy of Four Seasons Hotels and Resorts, Inc is multifaceted. Their growth strategy is driven by opening the finest hotel, in the right destination, which will lead to the right economics for the hotel owner. They not only discover destinations where their consumers want to go, but target those markets where they want to create their presence and to increase awareness for future Four Seasons’ travelers. But at the same time investigate opportunities to engrain their positions in those destinations, where they have already operated. According to Kathleen Taylor ‘Four Seasons has approximately 50 projects in various stages of design and construction. The vast majority will come outside the U.S., with a focus on China, India and Latin America. There are lots of cities in those areas where Four Seasons needs to
Number of locations 456 hotels in UK[1] [1] 11 hotels in Ireland [2] 3 hotels in Spain Area served United Kingdom Republic of Ireland Spain Keith Hamill (Chairman) Grant Hearn(CEO) Hotels £331.7m (2010) [1]
The hotel chain, Astor Lodge and Suites, Inc., operates 250 properties in 10 western and Rocky Mountain states. The company’s customer base primarily comprises business travelers. In addition, the locations of the properties surround airports, large regional shopping centers, and major highways close to suburban industrial sites as well as office complexes. Projections of 2005 fiscal year forecast a fifth consecutive year of a gross loss for the firm. The estimates include an anticipated $422.6 million in company lodging revenues but a net loss of $15.7 million for 2005. As a result, Joseph James, president and CEO of Astor Lodge and Suites, Inc., initiated a challenging goal for executive management to devise a strategy achieving net profits in two years and sustaining positive growth in the future.
Since its foundation in 1927 Marriott Corporation grew into one of the leading lodging and food services in the US. With three major business lines: lodging, contract services and related business, Marriott has the intention to remain a premier growth company. To achieve this goal the corporation’s strategy is to develop aggressively appropriate opportunities within their business lines. Marriott would like to be the preferred employer, the preferred provider and the most profitable company in each of the operating areas. The financial strategy includes four key elements:
Last year, and for each of the past 25 years, Four Seasons received more AAA Five Diamond awards than any other hotel company and has recently been named Top International Hotel Chain by the Zagat Survey and Four Seasons continues to be one of Fortune magazine's Top 100 Companies to Work for in America.
The hotel industry is a very hard industry to enter into, due to one of the biggest obstacles, which is brand recognition. Right now there are a few large hotel chains that make a large footprint in the market. It is hard for a new entrant to come into the industry and compete with these large hotel chains without bringing something new to the table. Many large chains in the industry dominate the industry due to economies of scale due to franchising.
Host Hotels & Resort, Inc. entered the REIT membership in March of 2007 and its’ publicly traded ticker symbol is HST. Its’ headquarters is located in Bethesda, Maryland, with hotels all across the United States. After studying Host Hotels & Resorts acquisition activity, we feel like their property
Premier Inn is the name of a British Budget Hotel chain running the largest hotel brand in the United Kingdom. Hotel chain is running 690 hotels with more than 50,000 rooms built in different countries. The hotel chain listed in London Stock Exchange in 1987 with brand name of “Whitebread” and started trading of its services under the chain of “Travel Inn” in order to compete with travellodges. Business operation of Premier Inn is not only limited to city centers but also covering suburbs and airports locations Hotel chain is following the expansion and acquisition policies since the time of its inception and acquired hotel chain named as Premier Lodge in 2004 (Whitebread, 2013). This acquisition increased the number of hotels and the profit as well. Premier Lodge was running with 141 hotels and contributed 70% of the total profit of “Whitebread”. Target market of the hotel chain is not only the leisure visitors and families but also the world business class seeking countless business and travel facilities. Award winning business services, comfortable sleep on king size beds and delicious breakfast are further adding value for the hotel chain while elevating the status of Premier Inn to be the first choice of families and business class to take their stay decisions at Premier Inn. The ambitious and high paced profitable progress of the Hotel chain is opening new ways of expansion and development. The hotel chain is therefore, planning to increase around 45% i.e. 75,000 rooms
is one of Canada’s top hoteliers in the mid-market, owning interests in 16 hotels in Canada and the United States. Furthermore NGI is in ownership of 2,200 rooms in 17 hotels across Canada and the United States. The Company is expert in all facets of the hotel business, from marketing to building to management. Focused on creating the best return and value for all stakeholders, Northampton’s market-sensitive strategy is to acquire or build hotels that provide great value and superior accommodation. Gratefully, NGI excels in this sector by offering services that exceed expectations while still posting industry-leading margins. Besides acquiring and developing undervalued and underutilized hotel assets, NGI also provides superior overnight accommodations at mid-market prices. This has been done through aggressive marketing, re-branding and ongoing hotel upgrades.
However, the higher number of properties managed by the corporate branded hotels could have provided a larger base and more similar-styled options for multi-property stays by guests compared to the lower base of those in the individually branded categories like Rosewood. The distinct personalities of each Rosewood property may ironically limit multi-property stays due to each property’s own merits. Thus, Rosewood’s data of 5% guests who had stayed in more than one of its properties may not necessarily be an inferior indicator in relation to that of Four Seasons’ 9% rate.
well supported and opened on time and on budget. In order to own 150 hotels across Europe