Carlson Hotels, privately help company behind brands such as Radisson, Park Inn and Country Inns & Suites, has agreed to being acquired by a Chinese company called HNA Group for an undisclosed amount.
The purchase also includes Carlson’s 51.3 share of Rezidor Hotel group that develops Carlson’s brands in Europe, Middle East & Africa.
Here’s an excerpt from WSJ:
The Chinese firm, headquartered in a Buddha-shaped building on the scenic island of Hainan, has a complex business structure stemming from its origins as a joint venture between the provincial government and private investors led by company co-founder and chairman Chen Feng, a devout Buddhist.
HNA originally started as an airline to shuttle tourists to and from what was dubbed China’s Hawaii. Today, its flagship Hainan Airlines Co. is China’s fourth-largest publicly listed airline by fleet size. The company has since expanded into other areas such as logistics, hotels, retail, real estate and travel.
And here from Reuters:
HNA Tourism CEO Bai Haibo said the company would build on the well-known Radisson brand to help “establish our presence in the U.S. market and expand our footprint in hospitality internationally”.
After the deal HNA will have to decide whether to sell down its holding in Rezidor Hotel Group to below 30 percent or launch a mandatory public tender for the remaining 48.7 percent of the company, the firms said in the statement.
The Chinese companies are on a shopping spree like the Japanese were few decades earlier. Only time will tell whether these purchases end up being successful.
It is expected that this purchase will clear sometime in late 2016. I don’t expect any changes to the Club Carlson loyalty program in the near term due to this deal.