SAN FRANCISCO—Commune Hotels & Resorts, the international lifestyle hotel management company comprising the Joie de Vivre Hotels, Thompson Hotels, tommie and Alila Hotels & Resorts brands, and Destination Hotels, an operator of independent hotels, resorts and residences in the U.S., have merged to create an operator of independent and lifestyle hotels and resorts.
The merger creates an opportunity for the two companies to leverage their respective strengths and competitive advantages, according to the companies. The combined company is anticipated to drive superior financial and investment performance for property owners and will offer greater options to guests and career opportunities for employees.
Geographically, Commune and Destination operate in highly complementary markets, and with very little overlap, according to the companies. In addition, through the merger, each company significantly strengthens a key portion of its portfolio: Commune brings a broader set of urban offerings across North America, Asia and Europe, while Destination contributes a wide array of resort properties in premier destinations.
The respective customer bases are also complementary, giving each company immediate access to new individual travelers and groups focused on the independent and lifestyle market, according to the companies. Together, Commune and Destination will have a larger sales, marketing and revenue management platform and distribution system through which to drive enhanced property revenues and performance.
Commune and Destination are committed to maintaining individuality across each property and brand, and offering the independent traveler an array of properties. The combined company will manage over 90 hotels and resorts in seven countries with approximately $2 billion of total property revenues under management, and will look to opportunistically broaden the geographic reach of its brands both domestically and internationally in urban and resort markets.
Robert Lowe, Jr., co-CEO of Lowe Enterprises, parent company of Destination Hotels, said, “This is an exciting step forward for all of us as we bring together these two great and complementary hospitality companies. Joining forces with Commune will allow us to position the combined company as the most sought after operator in this exciting segment of the industry and enhances our ability to deliver differentiated experiences to travelers across the globe. We will stay true to our guests and brands while driving enhanced performance for our owners as we continue to grow together.”
“We are thrilled to join with Destination. Their team and the Lowe family share our passion and commitment for offering locally relevant, unique and personal experiences to our guests, while also delivering strong financial results for our property owners,” said John Pritzker, chairman of Commune Hotels & Resorts. “As well, we are fortunate to have such fantastic depth of leadership in both Jamie Sabatier and Niki Leondakis. I am confident that, together, they will lead the company into a new era.”
The combined company will be based in Denver with offices in San Francisco, New York, Singapore and Shanghai. In addition, Pritzker and Lowe, Jr. will serve as co-chairmen of the combined company.
Moelis & Company LLC is acting as financial advisor to Commune Hotels & Resorts and Destination Hotels.