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Business & Finance

Wilson Hotel Management and Valor Hospitality Partners to Merge

ATLANTA, GA. September 12, 2017 - Kemmons Wilson Companies (KWC) announced that it will merge its hotel management operations—the company’s wholly-owned subsidiary, Wilson Hotel Management, LLC—with Valor Hospitality Partners. In addition, KWC will be making a substantial investment in the combined entity, which, along with the merger, is expected to immediately accelerate Valor’s growth. Neither company disclosed terms of the merger.

The company will be headquartered in Atlanta and London while retaining an office in Memphis. The combined operations will encompass 41 properties in the U.S. and the U.K., with 48 corporate employees and well more than 3,000 team members within the hotels. Several of the projects within the U.S. and U.K. are currently in various stages of development or in the pipeline.

Euan McGlashan, co-founder and managing partner of Valor, noted, “When Steve Cesinger and I formed Valor over five years ago, we chose the name Valor to represent our core values of integrity, courage, transparency, and tenacity, and we could not be more pleased to have found a partner with such a strong cultural fit along with a longstanding, highly regarded reputation in the hospitality industry. Kemmons Wilson is one of the most relevant names in the hotel industry, and we are truly humbled and proud to be linked with such an iconic and storied family. This merger is the result of building our reputation through strong commercial results all wrapped in an authentic, award-winning culture where associate engagement means everything to us.”

McLean Wilson, principal, Kemmons Wilson Companies, added, “We have been developing and managing hotels since 1952 when our grandfather, Kemmons Wilson, started Holiday Inn. Over the past 65 years, we have franchised multiple brands, learning the nuances of each. Valor’s proven track record with their team members, excellent service, their focus on full-service hotels and an international portfolio really solidified them as the absolute right partner for us. We are excited to expand our efforts in the hospitality arena through our significant investment and strategic partnership with Valor. Together we can do more and execute better than we could have alone—a real one plus one equaling three.”

Both WHM and Valor have similar strategic visions that a merger will help them realize more quickly. The new entity will leverage the strengths of both companies to continue delivering award-winning service that owners and patrons enjoy and have come to expect. They also remain committed to their focus on culture, ensuring their team members truly understand their importance to and impact on the success of the business.

“Our partnership discussions naturally evolved from our initial conversations because we discovered how aligned our values are for each company and that we have a strikingly similar focus on people and their empowerment in the business,” shared Steve Cesinger, co-founder and managing partner, Valor Hospitality Partners. “Kemmons Wilson’s impressive story strikes a strong chord with Euan and me, as self-made entrepreneurs in the hospitality industry ourselves. We’re thrilled to see these two companies come together and look forward to leading the combined venture into a new era of hospitality management.”

About Valor Hospitality Partners

Valor Hospitality Partners is a proven hospitality management company of alternative thinking enthusiasts, driven by excellence and achievement of top and bottom line targets. Our on-time/on-budget ethos, combined with our willingness to invest directly in projects where necessary, ensures we are aligned with owners and investors.

Contact:
info@valorhospitality.com
404.846.0700

Coming Up In The December Online Hotel Business Review




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Feature Focus
Hotel Law: Issues & Events
There is not a single area of a hotel’s operation that isn’t touched by some aspect of the law. Hotels and management companies employ an army of lawyers to advise and, if necessary, litigate issues which arise in the course of conducting their business. These lawyers typically specialize in specific areas of the law – real estate, construction, development, leasing, liability, franchising, food & beverage, human resources, environmental, insurance, taxes and more. In addition, issues and events can occur within the industry that have a major impact on the whole, and can spur further legal activity. One event which is certain to cause repercussions is Marriott International’s acquisition of Starwood Hotels and Resorts Worldwide. This newly combined company is now the largest hotel company in the world, encompassing 30 hotel brands, 5,500 hotels under management, and 1.1 million hotel rooms worldwide. In the hospitality industry, scale is particularly important – the most profitable companies are those with the most rooms in the most locations. As a result, this mega- transaction is likely to provoke an increase in Mergers & Acquisitions industry-wide. Many experts believe other larger hotel companies will now join forces with smaller operators to avoid being outpaced in the market. Companies that had not previously considered consolidation are now more likely to do so. Another legal issue facing the industry is the regulation of alternative lodging companies such as Airbnb and other firms that offer private, short-term rentals. Cities like San Francisco, Los Angeles and Santa Monica are at the forefront of efforts to legalize and control short-term rentals. However, those cities are finding it’s much easier to adopt regulations on short-term rentals than it is to actually enforce them. The December issue of Hotel Business Review will examine these and other critical issues pertaining to hotel law and how some companies are adapting to them.