Commune and Destination Hotels to merge

by Jane Kitchen | 25 Jan 2016

Commune Hotels & Resorts – which operates Alila, Joie de Vivre and Thompson Hotels – is merging with independent hotel operator Destination Hotels, which runs 45 properties in the US, including Miami Beach’s Eden Roc, the Royal Palms Resort & Spa in Phoenix, and Paradise Point Resort & Spa in San Diego.

Together, the combined company will manage more than 90 hotels and resorts in seven countries, with approximately US$2bn (€1.8bn, £1.4bn) of total property revenues. The new company will be based in Denver, Colorado, with offices in San Francisco, New York, Singapore and Shanghai.

Geographically, Commune and Destination operate in highly complementary markets, and with very little overlap, the company said. San Francisco-based Commune manages more than 45 hotels and resorts across North America, Asia and Europe, while Destination features a wide range of resort properties in the US.

The new company will “look to opportunistically broaden the geographic reach of its brands,” it said in a statement.

“We are thrilled to join with Destination,” said John Pritzker, chair of Commune Hotels & Resorts. “Their team and the Lowe family share our passion and commitment for offering locally relevant, unique and personal experiences for our guests, while also delivering strong financial results for our property owners.”

Alila – which has the in-house brand Spa Alila – recently opened a property in Bali, and has five properties in Asia in development for 2016: three in China, a heritage resort in India, and a location in Jakarta next to the Indonesia Stock Exchange.

This is the third hotel merger in as many months. In November, Marriott announced it is buying its rival Starwood for US$12.2bn (€11.3bn, £8.6bn); the next month, Accor followed with plans to buy FRHI – the owner of Raffles, Fairmont and Swissotel – for approximately US$2.9bn (€2.7bn, £2bn).

Commune Hotels  Destination Hotels  Alila  merger 
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Commune Hotels & Resorts – which operates Alila, Joie de Vivre and Thompson Hotels – is merging with independent hotel operator Destination Hotels, which runs 45 properties in the US, including Miami Beach’s Eden Roc, the Royal Palms Resort & Spa in Phoenix, and Paradise Point Resort & Spa in San Diego. Together, the combined company will manage more than 90 hotels and resorts in seven countries, with approximately US$2bn
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Alila has five properties in Asia due to open in 2016, including the Heritage property Alila Fort Bishangarh, which will launch in Q4 following the restoration of the 230-year-old Rajasthan Fort / Alila
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