Global Hospitality Report (October 31, 2016)

In Focus: Udaipur – An Oasis of Potential 
By Shunit Roy and Achin Khanna

The article focuses on the history of Udaipur and progress of its hotel market while providing a brief outlook of the future potential.

HVS Takeaways: The 2016 Dallas Hotel Conference 
By Kathleen Donahue and Hunter Dietz

This year’s Dallas Hotel Conference, one of the chief annual hospitality events in the South Central U.S., provided insights into foreign sources of capital, the Marriott-Starwood merger, and potential challenges facing the industry.

Online Travel Portals ibibo and MakeMyTrip Announce Merger 

India’s largest travel booking portals, ibibo and MakeMyTrip have announced an all-stock merger last week, reportedly valued at about US$1.8-2 billion. The newly merged entity will bring together several renowned brands in the accommodation segment – which include Rightstay (alternate accommodation), GoStays (unbranded budget accommodation aggregator), Value+ (budget room brand by MakeMyTrip) – under one umbrella, in addition to online bus ticketing platform redBus and ridesharing platform Ryde. The combined entity is expected to dominate the space with an overall market share ranging between 50% and 60%, especially in the more lucrative hotel and travel packages segment, which is considered to be the growth driver for travel companies in India.

HNA Acquires 25% Stake in Hilton  

Chinese conglomerate HNA Group is to acquire an equity interest in Hilton Worldwide of approximately 25% from affiliates of American group Blackstone. The transaction, which is reported to have a cash value of around US$6.5 billion (US$26.25 per share), is expected to close during the first quarter of 2017 and will see Blackstone’s share in Hilton drop to 21%. We are pleased to welcome HNA Group as a long-term investor and strategic partner," said Christopher J Nassetta, Hilton’s president and chief executive officer. "HNA Group has a broad portfolio of successful travel and hospitality businesses and a proven track record of creating value in this industry. We believe this mutually beneficial relationship will open new opportunities for our brands and guests around the world, particularly in light of HNA's strong position in the fast-growing Chinese travel and tourism market, the largest outbound travel and tourism market in the world," he continued.


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