The Big Deals Hotel CEOs Are Chasing in 2018

Already this year, we've seen at least one major hotel acquisition announced: Wyndham's $1.95 billion purchase of La Quinta Inns & Suites. And if what hotel CEOs said on their recent quarterly earnings presentations at the Americas Lodging Investment Summit (ALIS) in January is any indication, we can expect more deals in 2018. Last year, we saw a number of deals as well, albeit on a smaller scale than those that took place in 2016 between Marriott and Starwood, and AccorHotels and Fairmont, Raffles, and Swissotel. It's only February, and 2018 is still relatively young, but already we know of a few companies hoping to fill gaps in their portfolios with some acquisitions. Looking to Luxury and Locals InterContinental Hotels Group (IHG), for one, is on the lookout to buy a few luxury brands that will occupy a luxury tier that's even higher than what the company already has with its InterContinental Hotels brand. "We are currently looking to acquire one or two small luxury asset-light brands that we would incubate and grow in order to access these significant opportunities," said IHG CEO Keith Barr, speaking to investors and analysts during the company's fourth-quarter earnings presentation in February. AccorHotels, ever the acquirer, is also eyeing the market for more businesses that will allow it to be a true experience platform, and not just a hotel company. During his company's recent earnings presentation, CEO Sebastien Bazin outlined his vision for transforming AccorHotels into more than just a hotel brand, and justified the group's investment in various luxury brands. Bazin said that American companies "were very focused on this segment [luxury] that we had a tendency to forget," and "that's why we have to conquer and acquire existing brands." He also pointed to the success and power of brands like Apple, Amazon, Alibaba, and Facebook that are "in your minds every day, and they're in your minds because you use them every day. So, they're in your homes, in your field of vision, in your minds and many of you are actually dependent on them." Bazin said the company's recent acquisitions are part of an effort to develop that level of engagement with consumers, a concept Skift explored in depth in our Travel Megatrends for 2018. "If I can catch your attention when you're home, if we can provide you with a service at any time, if I could find you not just a one-time stay or not just restaurant ... there are so many ways in wh