Commune, Destination Hotels Announce Merger
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Commune Hotels & Resorts and Destination Hotels announced Friday that they have agreed to merge, resulting in one of the industry's leading operators of independent and lifestyle hotels.
By combining each company's strengths, the new company will boast a more complete portfolio comprising properties in premier destinations around the globe. The new combined company will manage more than 90 hotels and resorts in seven countries with approximately $2 billion of total property revenues under management.
The goal for the merger is to leverage both companies' competitive advantages in order to improve market performance, expand the selection available to guests and to attract the industry's best talent.
"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," Commune's chairman John Pritzker said in a statement. "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."
Meanwhile, the co-CEO of Destination Hotels' parent company Lowe Enterprises Robert Lowe, Jr. called the merger "an exciting step."
"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," he added. "We will stay true to our guests and brands while driving enhanced performance for our owners as we continue to grow together."
Moving forward, the new company will be based out of Denver, Colorado, and Pritzker and Lowe will serve as co-chairmen.
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