Commune Hotels & Resorts and Destination Hotels have
merged to form a management company that oversees more than 90 boutique hotels
and resorts with a combined revenue of more than $2 billion.
Commune's Joie de Vivre and Thompson Hotels divisions
have a broad presence in U.S. metropolitan areas such as New York, Chicago and
the San Francisco Bay Area. Destination Hotels oversees properties such as the
Terranea in the Los Angeles area, Eden Roc in Miami Beach and Tarrytown House
Estate in New York's Hudson Valley.
No financial details for the merger were disclosed.
Commune is headed by Hyatt Hotels scion John Pritzker.
The transaction brings together two companies that have
focused on the higher end of the lodging industry, mostly without chain
branding (Thompson Hotels being an exception). Early last year, Destination
Hotels looked to boost its exposure to the public and travel professionals by
launching a new website and logo while expanding its loyalty program.
“Joining forces with Commune will allow us to position
the combined company as the most sought after operator in this exciting segment
of the industry and enhances our ability to deliver differentiated experiences
to travelers across the globe,” said Robert Lowe, Jr., co-CEO of Destination
Hotels parent Lowe Enterprises.
Lowe and Pritzker
will be co-chairmen of the merged company, which will be based in Destination
Hotels’ home base of Denver.
Commune Hotels was formed in 2011 as a 50-50 joint
venture between Joie de Vivre Hospitality and Thompson Hotels. Pritzker was
already Joie de Vivre's principal. Pritzker’s Geolo Capital bought out Thompson
Hotels’ 50% stake in Commune in 2013.