Mergers & Acquisitions - 10 Minutes News for Hoteliers - Page 49

Hotel Equities and Springboard Hospitality merge

🏨 Hotel Equities and Springboard Hospitality merged effective May 1, with Ben Rafter as CEO and Brad Rahinsky as chairman. The combined entity operates over 250 hotels across the U.S., Canada, Caribbean, and Latin America. Hotel Equities manages nearly 200 hotels, while Springboard Hospitality oversees 51 properties. The merger aims for revenue generation, technology innovation, and providing long-term value. Al Smith becomes COO; Rob Robinson is now president of Springboard Hospitality. Terms were not disclosed.

2 min

Ascend Collection marks global growth and unveils new logo

🏨 Ascend Collection by Choice Hotels surpassed 400 properties globally, introducing a redesigned logo and targeting expansion in urban and leisure markets. Launched in 2008, the brand now has 423 properties with over 70 hotels in the pipeline. In 2024, Ascend saw a 40% global room count increase, entering markets such as Washington, D.C., Vancouver, Mexico City, and Queensland, and signing a new property in Calama, Chile. Key portfolio hotels include Ice Hotel in Sweden and Copperhill Mountain Lodge in Åre, Sweden. Upscale and upper-upscale portfolios expanded by 44% in 2024, accounting for nearly one-fifth of Choice Hotels' total rooms, with a 16% increase in direct bookings for upscale properties. Key technology tools for owners include ChoiceMAX, choiceEDGE, and choiceADVANTAGE.

Hyatt moderates RevPAR outlook as it races to get Playa deal over the finish line

🏨 Hyatt Hotels is set to complete a $2-billion purchase of Playa Hotels & Resorts. In Q1, Hyatt's RevPAR grew by 5.7% year-over-year but CFO Joan Bottarini noted slowing bookings, predicting full-year RevPAR growth of 1-3%. CEO Mark Hoplamazian reported softer U.S. booking trends, with high single-digit declines, but stronger international RevPAR expectations. Hyatt's luxury segment is strong, but upscale and select services see less business travel. Roughly 50% of 2026's bookings are pacing over 10% ahead, with healthy rate increases. U.S. GDP fell by 0.3% in Q1 2025, the first decline since Q1 2022. Hyatt's acquisition of all Playa shares for $2.6 billion, including $900 million net debt, is underway, with the tender offer extended to May 23, 2025. The company is selling real estate, including Hyatt Grand Central New York and Andaz London, as part of an asset-light strategy. Hyatt's Q1 room pipeline increased by 7%, reaching approximately 138,000 rooms, and net-rooms growth hit 10.5%. Hyatt's loyalty program reached 56 million members, up 22% from the previous year.

2 min

Peachtree Expands Debt-Free DST Platform With New Jersey Hotel Offering

🏡 Peachtree Group launched the 114-key Residence Inn Ocean Township in New Jersey, its eighth Delaware Statutory Trust (DST) offering since 2022. The hotel is located in Monmouth County, one of the wealthiest U.S. counties, near beach destinations Asbury Park, Long Branch, and Sandy Hook. Netflix's $900 million investment in Fort Monmouth is expected to create 3,500 construction and 1,500 permanent jobs, boosting local hospitality. Peachtree's eight DST properties total over $220 million in debt-free transactions, aimed at 1031 exchange investors seeking tax deferral and investment in the resilient hotel sector.

4 min

Square Announces New Point of Sale App

💸 TPG acquires Sabre's Hospitality Solutions for $1.1 billion, establishing it as a standalone business serving over 40% of top hotel brands. Sabre's net proceeds of $960 million will primarily repay debt. The transaction, reinforcing Sabre's capital allocation, was approved by Sabre's Board and announced on April 28, 2025, with closure expected by Q3 2025. Legal advisor Haynes Boone, led by Dan Malone and Joshua Reisman, supported the deal.

4 min

Yelp Introduces New AI-powered Features to Enhance the Dining Experience

💰 TPG agreed to acquire Sabre Corporation's Hospitality Solutions business for $1.1 billion in cash. Sabre's net proceeds of approximately $960 million after taxes and fees aim to pay down debt and improve its capital structure. The standalone Hospitality Solutions serves over 40 percent of top hotel brands with a SaaS platform. The transaction is part of a strategic financial move, aligning with a net leverage target of 2.5x to 3.5x. Sabre's Board approved the deal, expected to close by the end of Q3 2025. Legal advice was provided by Haynes Boone, led by Dan Malone and Joshua Reisman.

1 min

Hilton Reports Q1 2025 Results

🏨 Hilton Worldwide Holdings Inc. reported Q1 2025 results with a diluted EPS of $1.23, adjusted EPS of $1.72, and net income of $300 million. Adjusted EBITDA hit $795 million, with a 2.5% rise in system-wide comparable RevPAR. The company's development pipeline reached 503,400 rooms, marking a 7% increase from the previous year. Hilton added 20,100 rooms, bought back 3.7 million shares, and returned $927 million to shareholders in Q1. Projected full-year 2025 figures include flat to 2.0% RevPAR growth, net income of $1,707-$1,749 million, Adjusted EBITDA of $3,650-$3,710 million, and $3.3 billion in capital returns.

2 min

Schroders Capital completes the acquisition of W Edinburgh hotel

🏨 Schroders Capital, a firm with $99.3 billion in assets, has acquired W Edinburgh from Nuveen Real Estate, entering Edinburgh's luxury hotel market in November 2023. The hotel, Marriott International's first luxury property in the city, features 244 rooms and combines Edinburgh's traditional architecture with modern design. It's located in St James Square’s newly developed area. The W Edinburgh was awarded Scottish hotel of the year 2025. Schroders Capital manages GBP 3.1 billion in hotel investments across Europe and recently acquired the NH Collection Milan Lifestyle property.

1 min

U.S. tourism faces sharp downturn amid political headwinds

🚩 U.S. tourism in 2025 faces a $10 billion loss with international travel projected to drop by 12%. Overseas visits decreased by 11.6% in March, with Western Europe down 17.2%. Canadian travel to the U.S. significantly declined, including a 32% reduction in car visits. Despite hopes for post-COVID recovery, political tensions and negative publicity, including detentions and deportations starting mid-March, are deterring travelers. Major U.S. cities like New York and Los Angeles report fewer ticket sales and bookings. The decline affects all states, with Florida, Texas, California, and New York most at risk. Domestic travel is also expected to fall due to the trade war's impact on disposable income.

4 min

Sabre Sells Hospitality Solutions Business Unit to TPG for $1.1B

💸 TPG to acquire Sabre's Hospitality Solutions for $1.1 billion in cash, with net proceeds of approximately $960 million for Sabre to pay down debt. This strategic move follows debt refinancings in December 2024 and April 2025 debt maturities repayment. The transaction, approved by Sabre's Board, is expected to close by end of Q3 2025, subject to regulatory approvals. Haynes Boone served as legal advisor, with the deal announced on April 28, 2025. Hospitality Solutions serves over 40% of leading hotel brands globally.

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