After a tumultuous 2020, those in the hospitality industry would have been hoping for a relatively uneventful 2021. Thanks to a number of new Covid-19 variants they didn’t get it. Nevertheless, there were still deals being done – although varying levels of government support meant sellers were still looking for decent prices with much less distress in the market than in previous crises.
With all that in mind we’ve picked five key moments from 2021 to illustrate how things have changed across the industry over the past 18 months.
Tony Capuano takes over at Marriott
What: Marriott appointed Tony Capuano as CEO after the death of Arne SorensonW
When: January/February
Why: Arne Sorenson’s death from pancreatic cancer at the age of 62, left a massive hole in the hospitality industry. He was only the company’s third ever CEO and the first not named Marriott. His replacement, Tony Capuano has pretty big shoes to fill.
Selina/Sonder/Oyo/Soho House go public
What: A variety of hospitality companies chose 2021 to hit, or at least start the process of hitting, the public markets.
When: All year
Why: The hospitality industry wasn’t immune from the SPAC bug with a couple of young companies taking this route to the public market. OYO on the other hand chose a traditional IPO. After a couple of years making a lot of noise and expanding rapidly, the Indian company has had to deal with issues beyond the pandemic. All these companies will be worth watching in 2022.
Accor closes Ennismore lifestyle merger
What: Last year Accor continued to play the M&A game, thorough a lifestyle joint venture. The deal eventually closed this year.
When: October
Why: As usual Accor saw where the market was heading a decided to go all in. The lifestyle sector has become one of the buzziest in leisure travel and Ennismore’s brands together with the assortment Accor has collected over the years will be a potent force.
Blackstone and Starwood Capital buy Extended Stay America
What: Blackstone and Starwood Capital bought Extended Stay America and its paired-share REIT for $20.50 per paired share in cash, in a transaction valued at approximately $6 billion.
When: March/June
Why: Leisure wasn’t the only hospitality subsector to gain momentum as a result of the pandemic. Extended stay caught the eye of plenty of investors as well. This particular deal was much more than just a Covid-19 kneejerk reaction but it likely illustrates the direction of travel over the coming years.
CitizenM raises $1 billion
What: Dutch hotel company CitizenM has raised $1 billion from its existing shareholders to help drive its global expansion plans.
When: November
Why: CitizenM was one of the pioneers of the affordable (luxury) lifestyle hotel. Now big hotel brands like Accor (see above) are growing their presence in the area meaning much more competition. To compete they need to grow and expand.