Wave of growth or wave of insolvencies? It's windy.
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Chain race for the lifestyle. And HITT and HOT.
Dear Insider,
It's only May and M&A momentum is picking up. But Big is only buying Small. Big or not though, the prices are considerable, which eases the pain of the small. Marriott's current acquisition of citizenM and the IHG/Ruby deal tell us something else: The chain giants are buying lifestyle brands because they themselves have become old, immobile and boring over the decades. Now, everyone is rushing into lifestyle to secure demand and a foothold in the market. Accor hit on this trend early on and sailed away from the other chains around the year 2000 with the purchase of Hoxton and the founding of Ennismore.
The powerful First Lady of the US hotel world has adopted a very self-confident franchise granddaughter who comes from these free-thinking lowlands (the Netherlands), loves to think outside the box and break standards. High heels meets sneakers. It remains exciting - and reminds me of the difficult and emotionally charged integration of the completely different thinking Design Hotels into the Marriott Group. Sarah Douag raises many other questions about this deal in her Marriott/citizenM article.
Another question for senior executives today: Is your (variable) salary already linked to incentives if you meet the ESG targets? In Europe, almost all companies have switched to the new model; Japan is a positive role model.