Chinese group buys Carlson

BEIJING  China’s HNA Tourism Group, and Carlson Hospitality Group, announced, Wednesday, they have entered an agreement for the acquisition of Carlson Hotels, Inc, owner of various brands including Radisson.

The joint announcement said the combination of HNA Tourism Group and Carlson Hotels would accelerate growth through investments in owned assets in major gateway cities, building of Radisson RED and other new brands.

HNA Tourism Group is a division of HNA Group, a Fortune Global 500 company with operations across aviation, tourism, hospitality, finance, and online services.

Carlson Hospitality Group owns the Quorvus Collection, Radisson Blu®, Radisson®, Radisson RED, Park Plaza®, Park Inn® by Radisson, Country Inns & Suites By CarlsonSM brands and the Club CarlsonSM global hotel rewards programme.

No details of the purchase price were revealed by either group.

“Carlson Hotels own a powerful set of global brands and this historic agreement provides tremendous opportunities for growth,” said Carlson Hospitality Group chief executive officer David Berg. “As part of HNA Tourism Group, Carlson Hotels will have an opportunity to advance our commitment to providing guests with hospitality worldwide.”

Founded by Curt Carlson, in 1938, the family is represented in the business by Carlson board chair, Diana Nelson.

“Hospitality is in our hearts, which made this a difficult decision. We strongly believe that selling our hotel business to HNA Tourism Group, a company that fully recognizes its value and heritage, is the best way for us to position it for success and to be true to my grandfather’s legacy in the long term,” she said.

Under terms of the agreement, which were unanimously approved by the Carlson Board of Directors, HNA Tourism Group will acquire all of Carlson Hotels, including its approximately 51.3% majority stake in Rezidor Hotel Group AB, Carlson Hotel’s master licensee registered in Sweden with hotels in Europe, the Middle East and Africa.

Since the  transaction will result in a change of control in Rezidor, HNA Tourism Group under Swedish takeover rules, will be obliged to launch a mandatory public tender offer for the remaining approximately 48.7% of Rezidor, within four weeks after the closing of the transaction.

HNA Tourism Group may, during the four weeks following closing of the transaction, decide whether to launch a mandatory public tender offer for the remaining shares in Rezidor or sell down its ownership in Rezidor to below 30% to comply with Swedish takeover rules.

The agreement to acquire Carlson Hotels is dated April 27.

The transaction is subject to regulatory approvals and other customary closing conditions, and is expected to close in the second half of this year.

David Berg, CEO of Carlson Hospitality Group Inc will remain as CEO of the new organisation and the hotel group’s head office will remain in the US.

sourced:ttrweekly.com