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Are You Sitting Down? JDV Hotels and Thompson Hotels Have Merged.

October 3, 2011 at 11:19 AM | by | Comments (5)

What do you get when you merge The Custom Hotel with The Hollywood Roosevelt? JT HOSPITALITY. Note: JT is not actually involved in this one.

When we got an email in our inboxes a short while ago with the subject heading, "JOIE DE VIVRE HOSPITALITY AND THOMPSON HOTELS MERGE" we thought for sure someone was playing a prank on us. Or maybe that someone was celebrating April Fools Day six months early.

But given that the news came from JDV's director of public relations, we knew that this was no joke. So now let's get into the details of this seemingly unholy merger.

The merger took effect on October 1st and it is purely a management partnership involving only hotel management operations but not real estate assets. Together, the company will now be known as JT Hospitality (did anyone just think of Justin Timberlake? We did.) and will manage 45 properties under the Thompson and JDV brands. The company is set to be officially announced/rebranded in early 2012 when the global branding strategy is rolled out.

Thompson's CEO and co-owner Stephen Brandman has been named CEO of JT Hospitality and the company will be headquartered in NYC. John Pritzker, whose private equity firm, Geolo Capital, took a majority stake in JDV last year, will serve as co-chairman as will Jason Pomeranc, Thompson Hotel's other co-owner and poster boy.

But what will happen to Chip Conley, the man who started JDV? He's now a "strategic adviser" albeit it a happy one.

"I'm thrilled that with the marriage of JdV and Thompson Hotels the spirit of the Joie de Vivre brand will be growing on a global scale and that the investors and owners who have been the mainstays of our company will enjoy the benefits of the distribution this growth will bring. I look forward to helping in any way that benefits JT Hospitality," said Conley.

We spoke with Brandman this morning and he called the partnership a "great marriage" and hinted at the possibility of doing bigger projects like resorts or introducing more hotel brands.

Speaking of hotel brands, Brandman said right now all JDV hotels and Thompson hotels will retain their JDV or Thompson-ness. That could change in the future with some JDV brands wanting to be a Thompson and vice versa. Interestingly enough, this has already happened. The Gaige House up in Sonoma, Calif. used to be a Thompson Hotel and is now a JDV Hotel.

As we take this crazy new merger in, we can understand the reasons for it happening. JDV has of late wanted to be a bigger, international hotel brand and Thompson has always been ambitious about expanding, but in the right places. Now it's got both JDV's Geolo Capital money and JDV's plethora of West Coast properties. Meanwhile, JDV can now say it's open in NYC, Miami, Toronto and coming soon, London.

But how will JT Hospitality reconcile Thompson's coolness and JDV's earthiness remains to be seen. TO BE CONTINUED...

What are your thoughts on this merger? Let us know in comments below!

Comments (5)

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Return to » Are You Sitting Down? JDV Hotels and Thompson Hotels Have Merged.


Good thing

Overall, I actually think this is a good thing but I just hope they each keep their respective identities. Like, 60 Thompson will always be a Thompson and Hotel Angeleno will retain all those JDV qualities I love, like Free WiFi for loyalty members. And I'm actually excited about a Thompson or JDV resort and even more excited about the possibility of a new hotel brand.

Plus, this is probably the best way for boutiquey lifestyle brands to stay afloat now--by joining forces--because the bigger brands are totally honing in on their markets.

Now I wonder if there's any sort of similar plan in the works for Morgans Hotel Group

juliana on October 3, 2011 at 12:32 PM #Permalink

Hmmmm.....

Geolo already has a culture shock rippling through JDV. This may completely destroy Chip's original brand once and for all?  It isn't what it used to be.... I wonder how this will play out.  This floored me.
HHotelConsult on October 3, 2011 at 6:56 PM #Permalink

It is pretty shocking

I am still thinking it's a joke! That said, Chip Conley's interest in JDV has been waning for a while. He's more focused on being an author and a business motivational speaker. So I'm not sure he will really even add that much input as a strategic adviser.
juliana on October 4, 2011 at 12:01 PM #Permalink

Starr

Amazing. The JDV crew is in for a rude awakening. Brandman & Company's treatment of staff is infamously horrible. There is no family feel, no positive vibe.  Just steamrolling inconsideration.  I hope this deal sours...and I suspect it may once the Thompson crew's true colors start to show.
Erin Andring on October 5, 2011 at 9:41 PM #Permalink

Poor JDV employees

Everything that Chip told the staff while JDV was being bought by Geolo capital was a complete lie. Chip ran for the hills with money is his pocket and left his "people" to suffer the consiquences.
Bradley Robert Hansen on January 28, 2012 at 10:15 PM #Permalink

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