The Carlson Cos. has sold its Radisson chain and the rest of its hotel business to HNA Tourism Group, a Chinese conglomerate,
the Minneapolis
Star Tribune
reported.
Terms were not disclosed, but Bloomberg estimated the deal at $2 billion, the
Star Tribune
article said.
The Carlson Hotel Group is one of the 10 largest hospitality companies in the world, with more than 1,400 hotels in over 110 countries and territories, the article said. Its brands also include Park Plaza Hotels and Country Inn and Suites.
Carlson, a family-owned company founded in 1938, cited the “larger economics” of the industry in explaining the decision, the article said. The Carlson family said there were multiple suitors, the report said.
Carlson will retain its larger Carlson Wagonlit Travel business, the article said. Carlson Wagonlit generated revenue of $24.2 billion in 2015, compared with $7.3 billion from the hotel business, the
Star Tribune
report said.
“Carlson Hotels headquarters will remain in Minnetonka, [Minn.,] a condition Carlson said was important to the sale,” the article said.
Rumors circulated in January that Carlson was considering selling its hotel business, the article said. “Industry analysts said Carlson Cos. has improved its brand positioning with the more upscale Radisson Blu but the company was struggling to keep up with hotel companies with deeper pockets and stronger loyalty programs,” the report said. (Source:
Star Tribune
, April 27, 2016.)
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