Latest news: AmEx GBT to acquire CWT for $570M; Hotel Equities adds; new Euro fund

Amex GBT acquiring CWT. New York City-based American Express Global Business Travel (Amex GBT) is acquiring Minneapolis, Minnesota-based CWT for $570 million in cash and stock in what would be one the largest mergers of travel management companies in history. Amex GBT said if the deal receives approval from shareholders and regulatory authorities, it expects to close in the second half of 2024. CWT serves 4,000 customers and is expected to generate approximately $850 million in revenue in 2024, which Amex GBT said would result in 0.7x revenue multiple. Both companies’ boards have approved the deal.

AC Hotel KC Downtown

Hotel Equities adds KC hotel. Little Rock, Arkansas-based Beechwood Pinnacle has selected Atlanta-based Hotel Equities to operate the 239-key AC Hotel KC Downtown. Beechwood Properties is the co-owner and developer for the project, which is scheduled to open in June and is being renovated from the historic Rialto Building in downtown Kansas City. The hotel will be the third Hotel Equities-managed property in the city. 

London firms combine for £500 million fund. London-based North Wind Capital and a fund managed by London-based Banor Capital have partnered to launch a £500 million ($632.3 million) fund focusing on the European hospitality sector. The fund will focus on acquiring distressed small and mid-sized hotels in the UK, Southern Europe, and Italy and target properties with diverse revenue streams and potential for value-added improvement. Both companies have invested an initial £25 million to seed the fund and aim to build a portfolio worth around £500 million.

Whitbread partnering to create underground hotel. Lazari Investments is partnering with Whitbread to build a 207-key Premier Inn below The Brunswick Centre in Bloomsbury, Central London. The companies said the initiative marks a significant advancement in hotel design and sustainability in creating the hotel within an underground car park beneath residential and retail building.

25hours adds in Copenhagen. Hamburg, Germany-based 25hours Hotels will open its second property in Copenhagen in July with the 128-key 25hours Hotel Paper Island.

Radisson expansion plans in Morocco. Brussels-based Radisson Hotel Group plans to expand its current portfolio of 11 hotels in operation and the pipeline in Morocco to 25 hotels by 2030. The company, which signed eight new hotels in Africa in 2023, wants to increase its portfolio of hotels on the continent from 100 currently to 150 in the next five years.

Hilton $900M in senior notes. Hilton Worldwide Holdings Inc. is offering $550 million aggregate principal amount of 5.875% senior notes due 2029 and $450 million aggregate principal amount of 6.125% senior notes due 2032. Hilton intends to use the net proceeds of the offering for general corporate purposes, including the repayment of $200 million in debt under the senior secured revolving credit facility, investments and acquisitions.

MGM $750M senior notes. MGM Resorts International proposes offering $750 million in aggregate principal amounts of senior notes due 2032. The company intends to use some net proceeds to pay debt, including 6.750% senior notes due 2025.