Could the purchase of Worldhotels by Associated Luxury
Hotels signal the start of a period of consolidation in the hotel
sales and marketing group space? It's certainly a crowded space,
with a plethora of alliances, representation companies and hotel
These companies have come under added pressure in the last couple of years with the proliferation of soft brands launched by the global hotel giants, which aim to tempt independent hotels with the lure of massive back-end systems and loyalty programs.
The ALH/Worldhotels deal makes a lot of sense as the two companies' respective portfolios have a minimal amount of geographical crossover, and the intention is to keep the two brands running concurrently whole maximising on efficiencies and cost savings behind the scenes.
It wouldn't be a surprise to see other groups with a sympathetic fit teaming up to gain safety from scale in their bid to hold off the threat from the big boys' offerings.