Skift Take
In 2017, the hotel industry took stock of the prior year's major mergers, focused on putting them all together, and worked on figuring out a path into the future.
The year 2017 was one preceded by a roller-coaster of a year in hospitality that saw a multitude of mega mergers, one of which — Marriott-Starwood — was particularly drama-filled.
Last year wasn't without its fair share of excitement, too, but it was also a period in which brands took time to really focus on what lies ahead. Now that those big mergers have taken place, the hard part has arrived: figuring out how to put everything together, and leading these companies well into the future.
Here's a look at some of the biggest hotel stories and themes we covered in the past year, and what to pay attention to as we head into the next one
The Era of Consolidation Continues
We didn't see in 2017 as many mergers and acquisitions of the magnitude that we saw in 2016, but there were a number of smaller transactions that took place and, as Marriott CEO Arne Sorenson predicted, consolidation is likely to continue.
Some notable acquisitions in 2017 included Airbnb's purchase of Luxury Retreats; AccorHotels' $930 million bid for Australia's Mantra Group, as well as its purchases of Squarebreak and Travel Keys, and AccorHotels' investment in the storied Orient-Express brand.
Wyndham Worldwide also made some moves, prior to announcing its planned spinoff, which it hopes to execute in 2018. In July, its hotel group bought the AmericInn chain for $170 million and in August, its RCI division bought Love Home Swap, one of the world's largest home exchange programs.
Best Western bought Sweden Hotels in an attempt to broaden its portfolio in Europe, and Scandic Hotels purchased Finnish hotel company Restel for $127 million.
On December 18, Choice Hotels announced its intent to purchase economy extended-stay brand WoodSpring Suites.
The industry is also keeping a watchful eye on the integration processes associated with the mergers that took place in 2016. Marriott's Sorenson has repeatedly said that the integration of Marriott and Starwood will take some time, and that technology is the "biggest risk" in the merger. There should be some movement on the combination of Marriott's three loyalty programs toward the end of 2018, and there are plans to rejuvenate the Sheraton brand.
Acquisition-happy AccorHotels has a lot of work to accomplish with integrating many of its new prizes, namely the luxury Fairmont-Raffles-Swissotel brands, and its luxury vacation rental business, which it consolidated under the Onefinestay brand earlier this year.
