David Berg, CEO of Carlson Hospitality Group

ENDING months of speculation, Beijing-based HNA Tourism Group has entered into an agreement with Carlson Hospitality Group to buy Carlson Hotels, with an eye to accelerate growth “in areas such as digital, owned assets in major gateway cities, the building of Radisson RED and other new brands”, said a statement.

HNA is acquiring all of Carlson Hotels, including its 51.3 per cent share in Rezidor Hotel Group, Carlson Hotels’ master licensee based in Brussels with hotels in Europe, the Middle East and Africa, for an undisclosed sum.

David Berg, CEO of Carlson Hospitality Group, will remain CEO of the new organisation.

The transaction is expected to close in the second half of the year, subject to regulatory approvals.

Carlson Hotels owns the brands Quorvus Collection, Radisson Blu, Radisson, Radisson RED, Park Plaza, Park Inn by Radisson, Country Inns & Suites By Carlson, and the Club Carlson global hotel rewards programme.

Asia-Pacific, in particular markets such as China and India, is one of, if not the fastest-growing region for these brands, with the group seeing a strong take-up of its new brand, the millennial lifestyle Radisson RED. Out of 10 signed Radisson RED hotels globally, five are in Asia-Pacific and two of these are in China.

As of January, it was planning to open 60 Radisson RED hotels globally by 2020. This is likely to accelerate under its new ownership with the statement singling out “the building of Radisson RED and other new brands”.

In Asia-Pacific, the chain has a pipeline of 91 hotels as of January comprising all brands.

Contacted for comment, Thorsten Kirschke, Carlson Rezidor Hotel Group president-Asia Pacific, said: “Once this transaction is fully concluded, we’ll be stronger than ever. We are excited about this agreement and confident that all Asia-Pacific stakeholders will recognise that as a combined company, we will be able to accelerate growth and advance our commitment through investments in areas such as digital, owned assets in major gateway cities and our portfolio of brands including Radisson Blu and Radisson RED.”

Said Berg in the same statement that the agreement provides tremendous opportunities for growth. “We look forward to working within HNA Tourism Group, a greatly respected global enterprise, in what will be an exciting new chapter in the history of Carlson Hotels. As part of HNA Tourism Group, Carlson Hotels will have an opportunity to advance our commitment to providing guests with hospitality worldwide.”

Acquisitive HNA already owns or has a stake in multiple travel brands, including Spanish chain NH Hotel Group, Washington-based Red Lion Hotels, Swissport International and Azul airline.

Said Bai Haibo, HNA Tourism Group’s board member and HNA Hospitality Group’s chairman and CEO: “…we will build upon (Carlson Hotels’ global success and strong, sustainable growth potential)…to establish our presence in the US market and expand our footprint in hospitality internationally. We look forward to working together with their management team, employees, franchisee partners, suppliers and customers to accelerate growth by investing substantially in the business.”

The sale leaked out in January when Carlson Hospitality Group appointed Morgan Stanley to seek a partnership, merger or sale of the company. Accor, InterContinental Hotels Group and HNA were among companies speculated to be interested.

HNA/Carlson is the third major chains consolidation following Marriott/Starwood and Accor/FRHI Holdings.

Meanwhile, AccorHotels has received antitrust clearance for its proposed acquisition of FRHI. The next step will be Accor’s shareholders meeting to approve capital and board representatives for Qatar Investment Authority and Kingdom Holding. The meeting is expected to take place in coming weeks, and the transaction is expected to close mid-year.

Pacific World’s chairman and regional managing director, APAC of Hotelbeds Group, Herve Joseph-Antoine

TUI Group is selling its Hotelbeds Group, which includes Hotelbeds, Pacific World and Intercruises, to UK private equity firm Cinven Capital Management, which had previously invested in Amadeus, and Canada Pension Plan (CPPIB) Investment Board.

A highly profitable business, the deal fetched around 1.2 billion euros and is expected to be completed by end-September subject to regulatory approvals.

The sale is expected to remake the bedbank business as the new ownership expects considerable growth opportunities through further investment in IT, tapping growth in Asia and other markets, and consolidation in the wholesale accommodation market, which remains highly fragmented.

Another major bedbank, GTA, is also banking on a new parent to make further investments along similar lines as its current owner Kuoni Group goes through the process of being sold to Swedish private equity firm EQT.

Cinven had invested more than one billion euros in R&D during its ownership of Amadeus, generating a return of seven times, a statement pointed out. It fully realised its investment in Amadeus in November 2011.

The statement said Cinven/CPPIB are buying Hotelbeds Group because of:

• Strong financial performance with double digit total transaction value growth in the bedbank business over the last five years;
• Strong underlying market growth supported by an expected increase in global hotel bookings;
• Hotelbeds’ highly experienced, proven management team, led by Joan Vilà, CEO, with an outstanding track record of driving organic growth in both its hotel supply and customer base;
• Market consolidation opportunities in Europe, Middle East, Asia and the Americas given market fragmentation and potential for further margin improvement through economies of scale;
• Opportunity to improve bedbank distribution via travel agents and tour operators – particularly in emerging economies – via investment in its sales and contracting team, as well as investment in R&D and IT systems to improve customer efficiencies and services.

Vilà, who will remain CEO of Hotelbeds Group, commented: “The bedbank segment continues to grow fast and with the backing of Cinven and CPPIB we will be well placed to invest more strongly than ever in technology, innovation and distribution. We look forward with anticipation to supporting the growth of our trade partners in this next stage of our development.”

Contacted by TTG Asia, Pacific World’s chairman and regional MD APAC of Hotelbeds Group, Herve Joseph-Antoine, said: “We expect to drive further important growth for all brands within Hotelbeds Group, but at this stage of the transaction process this is early to provide more specific details.”

For such a profitable, sunrise business, TUI’s decision to sell Hotelbeds has baffled industry members for months. Some speculated that TUI was simply cashing out while others said the Hotelbeds Group did not sit well with TUI’s vertical integration strategy.

Fritz Joussen, CEO of TUI Group in a statement confirmed both factors as influencers: “Following its transformation in the past few years, TUI Group has had a clear strategic agenda, covering the complete value chain from distribution via flight all the way to group-owned hotels and cruise ships as well as destination services. The group seeks to further strengthen this positioning.

“We combine the economies of scale of a global player with the strengths of our local markets and companies and their customer focus. We will use the disposal proceeds to continue our growth path, in particular in terms of content, and strengthen our balance sheet.”

– More insights in our Bedbanks report, TTG Asia, July issue

The Mercedes-Benz @ Fraser suite features a smart TV with internet conenctivity

MERCEDES-Benz Living@Fraser has been launched at the Capri by Fraser Changi City Singapore.

Nine terrace suites at the property have been given the Mercedes-Benz-focused design treatment, including S-Class gray-silver leather accents throughout the apartment, bed lighting inspired by signature Mercedes-Benz headlamps and a chandelier made out of Swarovski crystals.

Guests of the Mercedes-Benz suites are also entitled to services such as chauffer-driven airport pick-up in a Mercedes-Benz S or E class, special access to an AMG Simulator as well as exclusive use of the Mercedes-Benz Trek bicycles to explore Singapore’s East Coast.

Located in Changi Business Park within walking distance to Singapore EXPO, the property is part of a mixed-use development comprising offices, a shopping mall and a variety of dining, retail and entertainment options.

The suites are now open for stay at rates from S$400 (US$296.50) per night.

Zulkefli Sharif, CEO of Malaysia Convention & Exhibition Bureau

THE inaugural edition of WTM Connect Asia in Penang next month aims to connect South-east Asian sellers to international buyers, and plugs the gap for Malaysia in having a branded travel trade show at last.

An offshoot of World Travel Market, the three-day event will be held from May 18. The first will showcase more than 50 exhibitors and 75 hosted buyers, according to organiser Reed Travel Exhibitions. The opening will be held at E&O Hotel Penang while business meetings will be at Straits Quay Convention Centre in Penang.

Zulkefli Sharif, CEO of Malaysia Convention & Exhibition Bureau (MyCEB), said: “This show is important for Malaysia as we don’t have a travel trade show of international standard. It also provides an opportunity for South-east Asian sellers to meet with international buyers without having to travel far.”

MyCEB is targeting an economic impact of around RM15 million (US$3.8 million) from the three-day event and a total international spend of RM7.7 million.

Buyer breakdown is as follows: 40 per cent from Asia-Pacific, 20 per cent from Europe, 10 per cent from Middle East and Africa, and the rest from North America and Latin America. The show will also host a number of key outbound Chinese leisure travel buyers, providing more business opportunities for exhibitors targeting the Chinese market.

Show highlights will include pre-scheduled business meetings onsite, numerous networking opportunities, as well as speeches by Azran Osman Rani, former CEO of AirAsia X, and Jamling Tenzing Norgay, Sherpa Everest Climber, mountain guide, motivational speaker and author of Touching My Father’s Soul.

This show is supported by Ministry of Tourism and Culture, MyCEB and Penang’s state tourism.

Artist impression of the Wyndham Legend Halong lobby

HALONG Bay’s first-five star hotel, Wyndham Legend Halong Bay, is slated for a June opening in Vietnam’s Quang Ninh Province.

Located close to Halong Bay Pier, the property features 217 rooms – including a Penthouse Suite – with views of the ocean and Bai Chay Bridge. Facilities include five restaurants and bars, an outdoor swimming pool, fitness centre, spa and Kids’ Club.

Barry Robinson, president and managing director, Wyndham Hotel Group South-east Asia and the Pacific Rim, said: “Tourism is on the rise in Vietnam and Halong Bay is gaining more attention from tourists who are interested in seeking out the town’s natural beauty and local culture. (Wyndham) is the first global hotel chain to enter the market with an upscale property to meet the growing tourist demands for a premier hospitality product.”

Wyndham Legend Halong Bay also offers over 1,055m² of flexible function space with four event halls and two boardrooms for meetings and events. The largest grand ballroom can accommodate up to 1,280 guests for a seminar or 650 people for a gala dinner or wedding.

Managed by Kosmopolitan Hospitality, the US$40 million property is owned by Ha Long Star Service & Tourist Joint Stock Company.

Gaurav Sundaram, president, ProKonsul has also been named regional director, GBTA India 

THE Global Business Travel Association (GBTA) has launched GBTA India, and is looking to establish a broad-based membership among the Indian business travel community and develop quality educational content and events.

India is currently the 10th largest business travel market in the world, but with double-digit growth rates expected for business travel spend, the region will likely be a top-five business travel market in the next 15 years.

“The business travel market in India is one of the healthiest in the world and given its exponential growth rates, there is a clear need for innovative education and training to ensure there are enough qualified business travel professionals to keep up with the rise in demand,” said Michael W. McCormick, GBTA executive director and COO.

GBTA has partnered ProKonsul, a specialised business travel management consultant, to deliver its core activities of education, research, advocacy and networking in India and Asia-Pacific.

Gaurav Sundaram, president, ProKonsul, said: “GBTA’s entry into India and its partnership with ProKonsul represent very strong commitments to one of the fastest-growing markets in the world.The Indian market has a significant demand for professional education, quality research and industry networking opportunities that GBTA has global leadership in.”

Industry stakeholders in India likewise welcome the move.

“GBTA will significantly improve the standards of professionalism in the business travel industry in India through its focus on education and research. In ProKonsul, GBTA has a very strong local partner,” said Subrato Sarkaar, joint president-corporate administration for the multinational Aditya Birla Group.

Ankur Bhatia, director, Amadeus India, commented: “We believe that this is a natural progression to India’s projected growth in business travel.”