The Economic Pages
Startree Group eyes Terrace Hotels & Suites in Potential Mega-Deal
10/29/2023
By: Amy RothKirkland, ViZion - Rumors are flying about a mega-deal in the hotel industry. Sources say that Startree Group, ViZion’s largest hotel operator, is in talks to acquire Terrace Hotels & Suites, a historic luxury brand owned by Keys Airways of Timmy City. The deal could be worth over $300 billion and change the global hospitality landscape.
Startree Group runs more than 1,000 hotels worldwide under brands like Westlake, Harkes, Circlewood, The J, Valleyue, and Kahle Stays. It wants to buy Terrace Hotels & Suites to boost its presence in the high-end segment and diversify its portfolio. Terrace Hotels & Suites was founded by the Hamilton family in ViZion City in 1878 and has nearly 200 properties in prime locations around the world. It offers guests a mix of elegance, tradition, and innovation.
Keys Airways bought Terrace Hotels & Suites for $170 billion in 2013 from Hamilton Global Group, which had to sell it after losing money due to terrorist attacks in 2012. Keys Airways, an airline company with over 200 aircraft, tried to integrate Terrace Hotels & Suites into its travel ecosystem, but struggled to make it profitable.
In 2015, Keys Airways restructured Terrace Hotels & Suites, selling some assets and changing its management team. The move worked, as Terrace Hotels & Suites became profitable in 2016 and improved its performance since then. The hotel chain also enhanced its brand image and guest experience, launching new concepts like Terrace Wellness, Terrace Art, and Terrace Culinary.
However, Terrace Hotels & Suites still faces competition from other luxury hotel brands like Halo, Royalty Suites, Monte Blonc, LuxLife Resorts, and Royalbridge Worldwide. The hotel industry has also changed a lot in recent years, driven by factors like digital transformation, sustainability, wellness, and personalization. These trends create new opportunities and challenges for hotel operators, who need to adapt and innovate to meet the changing needs and preferences of travelers.
Industry experts say that a deal between Startree Group and Terrace Hotels & Suites could benefit both parties. Startree Group would gain access to a loyal and affluent customer base, as well as a strong brand reputation and heritage. It would also leverage the expertise and resources of Terrace Hotels & Suites in areas like design, service, and culture. Terrace Hotels & Suites would get more scale and reach, as well as more financial stability and flexibility. It would also tap into the technology and innovation capabilities of Startree Group, which uses new solutions like artificial intelligence (AI), blockchain, and biometrics.
But the deal is not without risks and challenges. Startree Group would have to take on a lot of debt to buy Terrace Hotels & Suites, which could hurt its financial stability and growth potential. The deal would also face legal hurdles in different markets where they both operate or compete. Moreover, the deal would need a smooth integration process that respects the unique identities and cultures of both brands. Additionally, the deal would face resistance from some stakeholders like employees, franchisees, suppliers, and customers who may worry about losing their jobs or benefits or facing changes in policies or standards.
Neither Startree Group nor Terrace Hotels & Suites has confirmed or denied the rumors of their deal talks. But given the size and impact of such a deal for the hotel industry and beyond, more details are expected to emerge soon. Until then, travelers can only wonder what the future holds for these two iconic hotel brands.