COMMERCIAL REAL ESTATE research company CoStar Group plans to acquire hospitality data firm STR for $450 million cash. The deal is expected to close during the final quarter of this year.
Included in the acquisition are STR Inc., based in Hendersonville, Tennessee; the company’s London-based international business STR Global Ltd.; its Cleveland-based digital media arm Hotel News Now; and the Hotel Data Conference, hosted each year in Nashville, Tennessee, since 2009.
“The STR team has built an extraordinary company that partners with the hotel industry to create benchmarks and analytics that are the primary tools hotel management and investors rely on to optimize and improve their assets,” said CoStar Group Founder and CEO Andrew Florance. “STR brings an unrivaled reputation within the global hospitality industry for their data integrity, reliability and strict confidentiality, and we look forward to continuing to build on these core values in the next chapter of STR’s growth.”
Originally called Smith Travel Research, STR was founded in 1985 as a private, family-owned company. It employs 370 people in 15 countries. It processes, analyzes and reports on data from 66,000 hotels with 8.9 million rooms in 180 countries.
“To say the results of these past three decades have been gratifying would be a great understatement,” said STR Chairman and Co-founder Randy Smith. “While it is hard to step aside from our life’s work and the STR family, I can do that with the confidence that this move will allow the next chapter of STR to be written.”
The acquisition will benefit STR’s growth, said the company’s President and CEO Amanda Hite.
“CoStar brings leading technologies, as well as complementary data, analytics and sales capabilities that we believe will enable STR to accelerate growth and increase the value and insights we provide to our hospitality clients,” Hite said. “This combination also represents an outstanding career opportunity for all of our employees around the world.”
Last week, STR released data on U.S. hotels’ performance in August. Occupancy was flat during the month at 71.4 percent while ADR increased 0.9 percent year over year to $132.47 and RevPAR went up 0.9 percent to $94.55.