China's HNA Tourism Group acquires Carlson Hotels
China-based HNA enters into agreement with Carlson Hospitality Group for the acquisition of Carlson Hotels
China-based HNA Tourism Group and Carlson Hospitality Group has entered an agreement for the acquisition of Carlson Hotels, Inc, and speculation that the firm was considering sale options earlier this year.
The latter 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.
Carlson Hospitality Group chief executive officer David P. Berg said in a statement: "We look forward to working within HNA Tourism Group, a greatly respected global enterprise, in what will be an exciting new chapter in the history of Carlson Hotels. As part of HNA Tourism Group, Carlson Hotels will have an opportunity to advance our commitment to providing guests with hospitality world-wide."
Under terms of the agreement, 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 based in Brussels, with hotels in Europe, the Middle East and Africa.
The transaction is subject to regulatory approvals and other customary closing conditions, and is expected to close in the second half of 2016.
Berg will remain as CEO of the new organisation, and HNA Tourism Group has pledged to maintain Minnetonka, Minn. as its headquarters.
Diana Nelson, Carlson Board chair said: "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 recognises 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."
"We have great respect for the Carlson family and a deep appreciation for its history and special culture," said Bai Haibo, HNA Tourism Group board member and HNA Hospitality Group chairman and CEO.