Hotel Online Press Releases
Hotel Industry Mergers Acquisitions Total $19.48 Billion in Announced Deals, The Lodging Research Network Reports
Completed Deals Through Third Quarter 1997 Are More Than Double Year-Earlier Period, www.lodgingresearch.com Says
New York - Oct. 13, 1997- Lodging industry mergers and acquisitions (MA) soared to 11 deals valued at $4.52 billion through the third quarter of 1997, according to the Lodging Research Network , the Internet-based resource for lodging industry data and information from Coopers Lybrand L.L.P.
That's more than double the year-earlier period, when hotel industry MA totaled 11 deals valued at $1.92 billion, the Lodging Research Network says. For all of 1996, hotel industry MA amounted to 18 deals valued at $8.83 billion, a record, but far below this year's nine announced -- but not yet completed -- deals worth $19.48 billion, the Lodging Research Network reports.
"1997 continues to be a year of extraordinary, record-setting deals for the U.S. hotel industry," according to Bjorn Hanson, Ph.D., New York-based chairman of the Coopers Lybrand lodging and gaming group, creators of the Lodging Research Network . "Beyond this year's 11 completed deals valued at $4.52 billion, there are nine more MA transactions that have been announced -- but not completed -- valued at $19.48 billion. We now expect six of these transactions may close by year end," he added.
Driving the robust MA activity are industry profits, forecast by the Lodging Research Network to reach a record $14.5 billion in 1997, availability of capital and the need to grow in a competitive market comprised of public companies, Hanson explained. "Also, the lodging industry today offers a very attractive picture for nonpublic and smaller public companies looking for business combinations," he added.
Completed Deals, Year-to-Date Eleven deals have closed through the third quarter of 1997
|Jan||Extended Stay America||Studio Plus Hotels||290.0|
|Feb||Starwood Lodging Trust||HEI Hotels LLC||327.0|
|Feb||Marriott International||Renaissance Hotel Grp||1,000|
|April||HFS Inc.||PHH Corp||1,830|
|May||Signature Resorts Inc.||Plantation Resorts||59.1|
|June||Host Marriott Corp.||Forum Group Inc.||540.0|
|July||Patriot American Hospitality||California Jockey Club/Bay Meadows Optg Co.||238.6|
|Aug||Wyndham Hotel Corp.||ClubHouse Hotels Inc.||130.0|
|Aug||Patriot American Hospitality||Grand Heritage Hotels||22.0|
|Sept||Signature Resorts Inc.||LSI Group Holdings PLC||50.6|
|Sept||Host Marriott Corp.||Chesapeake Hotel LP||31.5|
Total Year-to-Date Third Quarter 1997 Completed Deals
_ _ _ _ _ _ _ _ _ _ _
Pending Deals, Year-to-Date
Currently there are nine pending hotel industry MA transactions. All except Starwood Lodging Trust's acquisition of Westin Hotels Resorts and the Patriot American Hospitality's acquisitions of Carnival Hotels Resorts, Gencom American Hospitality and WHG Resorts Casinos are expected to close by the end of the fourth quarter of 1997, according to the Lodging Research Network. The Starwood-Westin deal is expected to close by Jan. 31, 1998.
|Amount (in millions)|
|Patriot American Hospitality||Wyndham Hotel Corp.||1,100.0|
|HFS Inc.||CUC International||11,000.0|
|Prime Hospitality||Homegate Hospitality||132.0|
|Doubletree Corp.||Promus Hotel Corp.||4,700.0|
|Starwood Lodging Trust||Westin Hotels Resorts||1,570.0|
|Fairfield Communities Inc.||Vacation Break USA Inc.||190.2|
|Signature Resorts Inc.||Marc Hotels Resorts Inc.||6.0|
|Patriot American Hospitality||Carnival Hotels Resorts
Gencom American Hospitality
|Patriot American Hospitality||WHG Resorts Casinos||300.0|
Total Year-to-Date Third Quarter 1997 Pending Deals
Coopers Lybrand's Lodging Research Network (www.lodgingresearch.com) makes available via the Internet Coopers Lybrand's renowned econometric forecasts for the lodging industry, breaking lodging industry news, an exclusive database of lodging industry real estate acquisitions, financial data of publicly traded lodging companies (including SEC filings), new hotel construction data, lodging census data from Smith Travel Research as well as an extensive research library that includes U.S. economic and demographic statistics. For more information about the Lodging Research Network, call toll-free 1-888-576-6656. One of the world's leading professional services firms, Coopers Lybrand L.L.P. provides services for enterprises in a wide range of industries. The firm offers its clients the expertise of more than 16,000 professionals and staff in offices located in 100 U.S. cities and, through the global network of Coopers Lybrand International, more than 74,000 people in 142 countries worldwide.
Source: Coopers Lybrand Lodging Research Network
Coopers Lybrand L.L.P., New York
Adam Brecht, 212/259-5996