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Checking In: Lodgian, Interstate Acquisitions March On

By Michael B. Baker / April 11, 2010 / Contact Reporter
Business Travel News on X
The financially struggling hotel operator Lodgian in March received a boost to support its proposed acquisition by an affiliate of Dallas-based investment firm Lone Star Funds. Independent proxy advisory firm RiskMetrics recommended shareholders approve the $2.50-per-share deal for the Atlanta-based hotel owner's 27 properties. Lone Star hopes to complete the $270 million transaction during the second quarter of this year. Lodgian, which attributed 72 percent of its business to transient and group business travel in BTN's most recent Business Travel Survey, reported a more than $50 million loss for 2009 and a significantly reduced portfolio, which consisted of 41 hotels at the end of 2008. Lodgian's portfolio consists of 5,230 rooms in the midprice and upscale tiers, largely Marriott International and InterContinental Hotels Group brands. Also in March, a joint venture of lodging companies Thayer Lodging Group and Shanghai Jin Jiang International Hotels Co. completed the acquisition of Interstate Hotels & Resorts. First announced in December, the deal gives the venture, called Hotel Acquisition Co., control of Interstate's 228 properties, totaling 46,000 rooms. Interstate's properties largely are in the United States and include Marriott, IHG, Hilton Worldwide, Starwood Hotels & Resorts and Wyndham Hotel Group hotels.

IHG Adds iPads To Concierge Desks
InterContinental Hotels this month began equipping concierge teams at select properties with Apple's iPad mobile device. Properties in New York, Atlanta, London and Hong Kong are using the devices to provide guests with directions through interactive maps, show destination-specific videos for activity recommendations and make instant bookings at restaurants and other activities. The properties are the first in the brand's global pilot program for the technology. "Our concierges are already engaging with our guests with useful information, such as pre-stay e-mails, destination-specific concierge websites, interactive maps and concierge videos," according to InterContinental vice president of global brand management Simon Scoot. "We are also preparing to pilot state-of-the-art Google Maps technology as well as other enhancements, and the Apple iPad will be a revolutionary way of showcasing some of these features."

Hilton Plans Rapid Growth For Home2 Suites
A little more than a year after its launch, the midprice extended stay Home2 Suites by Hilton has 60 approved franchise agreements in place along with plans for international expansion. The brand, first announced in February 2009, in December broke ground on its first property, in Fayetteville, N.C. Hilton Worldwide said that the 60 approved franchise agreements are nearing the construction phase, and more than 30 additional agreements are in preliminary stages. Hilton plans to have 100 Home2 Suites properties open by 2013. Hilton cited the brand's compact size and low development costs for quick growth. The prototypes consist of 108 rooms ranging in size from 323 square feet to 509 square feet, and the entire property fits on less than two acres.

Marriott Plans New JWs
Marriott International upper upscale brand JW Marriott this month said it planned to open 10 hotels this year: four in the United States, four in Asia and one each in Europe and South America. These include properties already opened in San Francisco and Los Angeles and hotels to open later this year in Chicago and Miami. It will debut three properties in India this year—in Bangalore, Chandigarh and Chennai—and hotels in Ankara, Bogotá and Hangzhou, China.
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