Competition between Spanish hotel chains may culminate in a merger, according to Hotel Management, Barcelo Hotel Group suggested NH Hotel Group, with which they have been competing for many years, will be sold for 3 billion dollars.
Long-term rivalry between The battle between two Spanish hotel companies could soon end if NH Hotel Group accepts a competitor's offer.
If NH Hotels agrees to sell the company and its entire vast portfolio across Europe, America and Africa, the combined chain will comprise approximately 630 properties with 110,000 rooms in more than 20 countries.
Thanks to Barcelo's contribution, the majority of hotels in the expanded portfolio will be based in Spain.
According to Top Hotel Projects, “this deal, if it goes through, is important for the Spanish hospitality industry.”
Spain's tourism industry has started this year with strong performance, with tourist arrivals up 12 percent year-on-year. Visitor numbers in the first half of 2017 reached 36.3 million.
According to current data, the increased demand for Spain as a tourist destination may be partly a response to security concerns in other countries.
According to the medium-term forecast, the current growth of consolidation in the hotel industry will continue in the coming years. Fitch Ratings notes that as the country's largest hotel companies increase their influence, the competitive landscape in the industry has begun to shift and drive interest in further consolidation between chains.
Source: trn-news.ru