MINNEAPOLIS—HNA Tourism Group Co., Ltd., a division of HNA Group Co., Ltd., has entered into a deal to acquire Carlson Hotels, Inc.—which owns the Quorvus Collection, Radisson Blu, Radisson, Radisson Red, Park Plaza, Park Inn by Radisson and Country Inns & Suites By Carlson brands—from Carlson Hospitality Group, Inc.
The combination of HNA Tourism Group—a Fortune Global 500 company with operations across aviation, tourism, hospitality, finance, and online services, among other sectors—and Carlson Hotels will have increased ability to accelerate growth through investments in areas such as digital, owned assets in major gateway cities, building of Radisson Red and other new brands.
Under terms of the agreement, 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 based in Brussels, with hotels in Europe, the Middle East and Africa. The transaction is subject to receipt of regulatory approvals, other customary closing conditions and is expected to close in the second half of 2016.
When the transaction closes, David P. Berg, CEO of Carlson Hospitality Group, Inc., will remain as CEO of the new organization. HNA Tourism Group has pledged to maintain headquarters in Minnetonka, MN.
Since the closing of the transaction will result in an indirect change of control in Rezidor, HNA Tourism Group would, under Swedish takeover rules, 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 if the ownership in Rezidor is not sold down below 30%, according to the company.
“Carlson Hotels own a powerful set of global brands and this historic agreement provides tremendous opportunities for growth,” said Berg. “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.”
“Since my grandfather, Curt Carlson, founded our company in 1938, our family has run businesses that create opportunity for people and positive change in the world,” said Diana Nelson, board chair for Carlson. “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.”
"We have great respect for the Carlson family and a deep appreciation for its history and special culture," said Bai Haibo, chairman and CEO, HNA Tourism Group board member and HNA Hospitality Group. "Carlson Hotels' global success and strong, sustainable growth potential is a testament to their world-class brands, continuous innovation, excellent management and unique employee-focused culture, all of which we will build upon as part of this combination to establish our presence in the U.S. market and expand our footprint in hospitality internationally. We look forward to working together with their management team, employees, franchisee partners, suppliers and customers to accelerate growth by investing substantially in the business."
