Associated Luxury Hotels buys Worldhotels

George Sell By George Sell
07 February 2017 | Updated 07 February 2017

US: Associated Luxury Hotels has bought Frankfurt-based Worldhotels for an undisclosed sum.

US: Associated Luxury Hotels has bought Frankfurt-based Worldhotels for an undisclosed sum.

US global hotel sales organisation Associated Luxury Hotels, the parent company of Associated Luxury Hotels International (ALHI) has expanded its global footprint and its collection of member hotels and resorts with the acquisition of Worldhotels.

Both organisations consist primarily of independent upper-upscale and luxury-level hotels, resorts and independent hotel brands around the world. Associated Luxury Hotels is based in Orlando, Florida, while Worldhotels will remain based in Frankfurt.

ALHI says: "The acquisition represents a timely and unique opportunity to increase Associated Luxury Hotels' competitiveness and profile with the addition of remarkably complementary, membership-based service offerings and a geographically diverse network. Worldhotels will remain focused on the individual business traveler (IBT), leisure and meeting sector solutions and expertise for its 75,000 rooms among 350 member hotels and resorts around the world. ALHI will continue focusing on the North American meetings, incentives, conventions and exhibitions (M.I.C.E.) marketplace for its membership of more than 250 luxury-level independent hotels and resorts totalling 138,500 rooms, plus their Global Luxury Alliance members across the globe."

"ALHI had already announced to its members that it plans to establish 'ALHI boots on the ground', augmenting its ALHI GSO sales team into Europe in 2017. Both ALHI and Worldhotels have been exploring means of expanding their geographic reach, talent pool, market penetration, and tactical deployment, making this strategic combination beneficial to both organisations and their memberships," it added.

The company will operate ALHI and Worldhotels as separate divisions, initially keeping the memberships and operations of each organisation separate as it evolves incremental benefits and synergy to each, while some select member hotels and resorts may be invited into the ALHI membership portfolio "for the benefit of the customers and accounts around the world".

ALHI CEO David Gabri said: "Bringing together these two highly respected and established companies enables us to better serve the evolving needs of our member hotels, resorts and emerging brands, plus their management and ownership groups. I believe the members will appreciate our hotel-centric, hotel-experienced approach in supporting their properties. Additionally, this combination will eventually greatly benefit the broad base of customers we serve in the meetings, convention and incentive, as well as the business travel and leisure travel sectors. Member hotels of both companies and their guests will benefit from the expanded access, markets, and global sales and marketing capability of a proven and passionate client service approach with a broader global footprint."

"With this strategic acquisition, Associated Luxury Hotels is preparing to become more valuable to hotel owners and operating companies as a significant, full-service 'soft brand' that provides GSO sales with broad-reaching reservations connectivity solutions to market their distinctive, unique and independent properties to transient segments and M.I.C.E. planners worldwide. Since we formed our company in 1986, we have been focused on being the very best GSO resource for our exclusive member hotels and resorts, as well as serve valued clients and organisations with such an amazing portfolio of distinctive, quality-focused properties and services. The addition of Worldhotels to our organisation is an exciting and logical expansion of that mission." he added.

"Together ALHI and Worldhotels will create a powerful combination to provide guests, members, and M.I.C.E. planners a comprehensive sales and marketing infrastructure and an expanded array of services that will effectively compete with the world's biggest hospitality chains. These two companies have very common and complementary characteristics. Both serve independent brands and properties across the globe. Worldhotels are known for their distinct ability to penetrate corporate travel accounts, transient sales and consortia, while ALHI has built a reputation as experts in the M.I.C.E. arena. Worldhotels' portfolio is mostly outside of North America while ALHI's is currently predominantly within North America.  We believe this is a formidable combination where 1+1 = 3; for the benefit of members and accounts we serve."

ALHI chief commercial officer Tom Santora will assume the additional role of executive chairman of Worldhotels, where he will oversee the strategic direction for Worldhotels. Worldhotels CEO Geoff Andrew will continue in his role.

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