Both Accor and HNA are thinking smarter than most about the right, strategic buys in the sector. And Carlson Rezidor is undervalued right now.
Accor SA, the biggest hotel operator in Europe, and Chinese conglomerate HNA Group Co. are among companies considering bids for Carlson’s hotel group, which includes the Radisson and Park Plaza brands, according to people with knowledge of the matter.
Carlson Rezidor Hotel Group could fetch about $2 billion in a sale, and a buyer could be chosen as soon as the first half of the year, the people said, asking not to be identified because the process is private. No final decisions have been made about the sale, and the company is also considering other options for the asset, the people said.
Spokeswomen for Accor and Carlson declined to comment. A representative for HNA didn’t immediately respond to requests for comment outside of normal business hours. Carlson owns a controlling stake in publicly traded Rezidor Hotel Group AB.
Paris-based Accor, which owns the Sofitel and Ibis brands, and HNA have been acquisitive in the hotel and travel industry in recent months. In December, Accor agreed to buy the owner of the upscale Fairmont, Raffles and Swissotel brands for about $2.9 billion in shares and cash. Earlier in the year, Accor acquired hotel-reservation service Fastbooking.
HNA is the biggest shareholder in Spanish hotelier NH Hotel Group SA. It agreed to buy a stake in Brazilian airline Azul Linhas Aereas Brasileiras SA and acquired airport luggage handler Swissport International Ltd. from PAI Partners SAS for 2.73 billion Swiss francs ($2.74 billion) last year. HNA was also one of the bidders to buy London City Airport, losing out to a consortium led by Ontario Teachers’ Pension Plan Board.
–With assistance from Dalia Fahmy and Hui-yong Yu.
This article was written by Ruth David, Manuel Baigorri and Jonathan Browning from Bloomberg and was legally licensed through the NewsCred publisher network.
Photo credit: Radisson Ambassador Plaza. Radisson