38 smartmeetings.com ❘ JUNE 2016 BRAND BUZZ By Dan Johnson A Happy, Complementary Marriage Destination-Commune merger unites domestic, international companies A t first glance, the merging of Destination Hotels and Commune Hotels & Resorts looks like a mismatch akin to the marriage of a domestic, resort-loving person and a worldly, urban type. But seemingly opposite qualities can be complementary, as seen both in marriages and the unification of hotel companies. Destination consists of premier destination properties throughout the United States, while Commune’s portfolio includes urban hotels and resorts across North America, Asia and Europe. The two companies merged in January, creat- ing an as-yet-unnamed company with 92 hotels in seven countries and some $2 billion in property-management revenue. “The merger was beneficial for both our companies, as we created the leading operator of independent and lifestyle hotels and resorts,” says Andre Fournier, vice president of sales and marketing for Destination Hotels. “It also expands opportu- nity for both our successful and growing companies to leverage their respective strengths and competitive advantages to better compete in a dynamic industry.” Benefits of the Merger By merging, the companies—which do share similar values and operating methods—will create a larger sales, marketing and revenue management platform and distribution system to drive property revenues and performance. “The combining of Commune and Destination was a merger of like-minded companies,” says Brian Jones, senior vice president of sales and marketing for Commune Hotels & Resorts. “While there are obvious financial benefits to our union, this also gives us the ability to broaden our offerings for guests.” Fournier says that the new company will maintain the individuality of each brand and property, and look to expand its geographic reach, both domesti- cally and internationally. “For our guests, the combined company will offer a greater selection of options at both urban and resort properties that create unique and memorable experiences,” Fournier says. “With a distinctly local and service-oriented focus across a broader range of geographies and price points, guests will be able to experience a greater array of what they have come to know and appreciate about Commune and Destination properties.” The combined company will be based in Denver, with offices in San Francisco, New York City, Singapore and Shanghai. The company will be led by Jamie Sabatier, the president and chief operating officer of Destination Hotels, and Niki Leondakis, the CEO of Commune Hotels & Resorts. Co-chairmen of the new company will be John Pritzker, chairman of Commune, and Robert Lowe Jr., co-CEO of Lowe Enterprises, Destination’s parent company. Since the merger was announced, both companies have been acclimating and conducting meetings to identify and solidify the structure of the new firm. The fate of the companies’ loyalty programs has not been announced. Both companies have recently experienced several other significant developments. Destination Hotels During the past year, Destination implemented several programs and brand initiatives focused on delivering immersive, memorable resort experiences. Fournier says that one of them, Signature Touchpoints, “elevated our offerings to those that are locally sourced and genuinely true to place.” Signature Touchpoints includes three elements: • Destination Suitcase provides guests with a virtual suitcase of tools to help them explore a property’s unique location, and thereby experience a range of enjoyable amenities and activities. • Destination Taste allows guest to begin their stay by enjoying a small bite on or off property that draws on rich local cuisine. • Destination Discovery consists of mini-excursions, including sightseeing and activities that provide authentically inspired experiences. Destination Hotels also teamed up with Tesla Motors to create Tesla Destination Charging Stations at hotels from coast to coast. The properties’ Tesla High Power Wall Connectors charge Model S and Model X vehicles over- night, adding nearly 60 miles of range per hour. The charging stations at Destination hotels and other places are hosted on Tesla’s interactive web page, and recently were GPS-located on both models’ navigation systems through a free software update sent wirelessly to the cars. So, Tesla owners now are able to use the 17-inch touchscreen in their vehicle to help plan trips. Fournier says that as Destination moves forward, its main emphasis for meet- ings will be to maintain its practices and programs that lessen meetings’ impact on the environment. Commune Hotels & Resorts Commune has been busy expanding its national and international footprints during the past year. The company consists of the Joie de Vivre Hotels, Thompson Hotels and Tommie brands, plus the Chicago Athletic Association Hotel and Alila Hotels & Resorts (added in June 2015). Quirk Hotel, a Destination Hotel, Richmond, Virginia