Commune Hotels and Resorts, the hotel management company comprising the Joie de Vivre, Thompson, Tommie and Alila Hotels brands, has merged with Destination Hotels, which operates independent hotels, resorts and residences in the United States. The combined company will manage more than 90 properties in seven countries. The new company will be able "to better compete in a dynamic industry" and "drive superior financial and investment performance for property owners and offer greater options to guests and career opportunities for employees," according to a press release.
The two companies currently operate in complementary markets, with little overlap, as is the case with their respective customer bases. Commune has a greater presence in urban destinations in North America, Asia and Europe, while Destination has resort properties across the United States. The merged company will benefit from a larger sales, marketing and revenue management platform, according to both parties. Combined, the company will have approximately $2 billion in total property revenues under management.
"We are thrilled to join with Destination," said Commune chairman John Pritzker. "Their team and the Lowe family share our passion and commitment for offering locally relevant, unique and personal experiences to our guests, while also delivering strong financial results for our property owners."
The combined company will be based in Denver, with offices in San Francisco, New York, Singapore and Shanghai, China. Destination president and CEO Jamie Sabatier and Commune CEO Niki Leondakis will retain leadership positions, while Commune chairperson John Pritzker and Robert Lowe Jr., the co-CEOs of Destination's parent company, will serve as co-chairs of the combined company. The merger encompasses hotel management operations and brands, while the investment platforms of the private-equity parent companies will operate independently.