Loews seeks partners for expansion

Loews Hotels & Resorts, “one of the last major hotel operators to own most of the hotels it manages,” will seek partners in order to reduce its exposure to real estate,

the

Wall Street Journal

reported.

“The real-estate shift is part of an expansion strategy to open more hotels without increasing its financial commitment,” the article says.

Kirk Kinsell, who took over as Loews CEO on March 2, said the company plans to double the number of Loews hotels in the next three to seven years, the article said. He also said Loews plans to open its first properties in Europe.

Previously, Loews opted for “the control and opportunity for additional profits that accompanies full property ownership,” the


Journal


report said. Before Kinsell took over, Loews became a 50% partner with Comcast NBCUniversal in four hotels in Orlando, Fla., the article said. Loews will also consider minority stakes, according to the report.

“As a wholly owned subsidiary of Loews Corp., the New York-based diversified company started by the Tisch family, Loews Hotels historically has relied on money from its parent company to buy or develop properties for the Loews brand. It is now pursuing joint-venture partners to enter new markets,” the article said. (Source:


Wall Street Journal


, March 18, 2015.)