From the desks of the Hotel News Now editorial staff:
- RLJ reveals it received unsolicited private equity bid
- 2017 Hotel Pain Index details what makes positive, negative stays
- Red Lion, Kimpton hit by third-party data breach
- How green initiatives boost top, bottom lines
- Largest APAC hotel deals in first half of 2017
RLJ reveals it received unsolicited private equity bid: In an amended S-4 filing with the U.S. Securities and Exchange Commission, RLJ Lodging Trust shared it received a series of unsolicited bids from a private equity investor referred to as “Party Y.” One of the key conditions of the bid was the cancelation of RLJ’s merger with FelCor Lodging Trust. The board of directors ultimately rejected the bids.
The filing shows the real estate investment trust received the first bid on 12 June, offering to acquire all capital stock at a price of $24 per RLJ common share in an all-cash transaction. When the board rejected the bid as it would not reasonably likely lead to a “superior proposal,” Party Y came back with an offer of $25 per share. Again the board rejected the bid, only to receive another offer of $25.50 per share. When the board found this bid could reasonably likely lead to a “superior proposal,” the board and Party Y entered into a confidentiality agreement and began a series of discussions.
After signing a confidentiality agreement and completing “business and legal diligence,” Party Y submitted an offer of $24 a share, identical to its first bid, which the RLJ board rejected. The filing states the board unanimously recommends its shareholders to vote for the merger. The vote for its merger with FelCor has been delayed from 7 August to 15 August.
2017 Hotel Pain Index details what makes positive, negative stays: Qualtric’s 2017 Hotel Pain Index goes through what makes a bad hotel experience, what makes a good one and what amenities are the most and least important, according to an infographic.
Sixty-six percent of respondents said dirty rooms cause bad hotel experiences and 57% said unfriendly employees are also a cause of negative hotel experiences.
The two factors cited as the chief causes of pleasant hotel experiences were clean rooms (76%) and Wi-Fi (65%).
Sixty-seven percent of respondents said they choose a hotel based on online ratings and reviews, but only 24% said they wrote a negative review online after a bad hotel experience.
Red Lion, Kimpton hit by third-party data breach: Red Lion Hotels Corporation and Kimpton Hotels & Restaurants announced that customer information might have been accessed through third-party reservations provider Sabre, according to company news releases. Kimpton noted this breach did not affect the systems of its parent company, InterContinental Hotels Group.
Hard Rock Hotels & Casinos, Four Seasons Hotels and Resorts and Trump Hotels previously announced that some customer reservation might have been affected by the same breach, which is believed to have occurred between August 2016 and March 2017.
How green initiatives boost top, bottom lines: Sustainability is no longer a luxury in the hotel business—it’s now a way for hoteliers to increase top and bottom lines, source materials and recruit and retain employees, writes Hotel News Now’s Sean McCracken.
HNN met up with a panel of experts at the InterContinental New York Barclay hotel on 7 June to talk about issues related to environmental sustainability in the hotel industry. Click here to read through the articles and watch online exclusives.
Largest APAC hotel deals in first half of 2017: Hong Kong and Australia are leading the way in large hotel deals for the first half of 2017, Mingtiandi reports.
During the first three months of the year, Hong Kong “hosted three hotel purchases of over $100 million,” according to the report. Australia had three hospitality deals in the second quarter of 2017 that topped $100 million.
“Hong Kong and Australia have been the standout markets in the region in terms of inbound investment, amounting to just under $1.5 billion altogether, driven by robust tourism growth and solid trading performance driving investment activity in Australia,” said Frank Sorgiovanni, head of research for JLL’s Asia Pacific Hotels & Hospitality Group, in the article.
Compiled by Danielle Hess and Bryan Wroten.