Hotel Industry Will Seek More Consolidation, Says Blackstone’s Head Of Real Estate
The hotel industry is only going to keep consolidating, according to Blackstone’s global head of real estate.
Jon Gray says consolidation will help hotel operators become more efficient while attracting more customers, saying travelers prefer “one big relationship” with a single firm over numerous smaller ones, Bloomberg reports. His comments come as international travel is on the rise and overseas buyers, from Chinese firms to Middle Eastern funds, eye hotel assets—not to mention the pending combination of Marriott and Starwood, which will create the world’s largest hotel operator.
Another sign of increased consolidation was Blackstone’s $6.5B sale of Strategic Hotels to Anbang earlier this year. And while that deal still isn’t complete, Gray says he’s confident it will go through. [Bloomberg]