Starwood Capital Bulks Up With Golden Tulip Hospitality Buy

Starwood Capital announced on Friday that it is finalizing negotiations to acquire the Switzerland-based multibrand hotel company Golden Tulip Hospitality, creating an alliance between Starwood's budget hotel division Louvre Hotels and the Golden Tulip brands.

Starwood Capital and Golden Tulip project the deal will be completed on June 26 and will create the 11th largest hotel company in the world, according to European lodging industry research firm MKG Hospitality, which said the Louvre-Golden Tulip alliance will consist of 1,070 hotels, or about 80,000 rooms, in 40 counties. The deal gains Starwood Capital all of Golden Tulip's assets and contracts, including the upscale Golden Tulip and midprice Tulip Inn brands.

Starwood Capital—a separate entity from the U.S. multibrand hotel company run by Starwood Hotels & Resorts Worldwide founder and former CEO Barry Sternlicht—currently controls several luxury brands, the business travel- and meetings-focused Concorde Hotels & Resorts as well as Louvre Hotels, which include the Premiere Classe, Campanile, Kyriad and Kyriad Prestige brands. Rich Gomel, managing director of Starwood Capital Group, said the company intends to grow the Louvre and both the Golden Tulip brands following the acquisition.

"Following completion, the group will be able to compete more effectively for corporate accounts thanks to a larger share of the global distribution system and distribution channels," Gomel said in a statement. "Furthermore, our franchisees will see significant benefit from the scale of our combined portfolios."

Source: Business Travel News