Abercrombie & Kent Gets A New Owner

Abercrombie & Kent was one of the first safari outfitters when it began in 1962.

A Chinese real estate company will buy luxury tour operator Abercrombie & Kent for an undisclosed amount, the company announced today.

Zhonghong Holdings Group agreed to purchase a majority of shares from Abercrombie & Kent’s current owner, U.S.-based hedge fund manager Fortress Investment Group.

The deal “will give us access to capital to finance new investments in the expanding luxury and adventure travel markets,” said Abercrombie & Kent founder and CEO Geoffrey Kent, who will stay on to lead the company.

Kent started Abercrombie & Kent with his parents in Kenya more than 50 years ago. Since then, the company has become a major player in luxury tourism, providing high-end expeditions in more than 100 countries. Abercrombie & Kent has expanded its product offerings to include Journeys around the World by Private Jet, Connections Boutique Group Journey and in 2017 it will add cruises with Azamara Club Cruises, Seabourn and Regent Seven Seas.

Zhonghong develops and operates leisure and vacation real estate, primarily in Beijing and Hainan Province.

The deal is expected to close in the third quarter of 2016.

JB’s World Travel Consultants president Jack Bloch said that as long as the company is kept intact, the new owners could give Abercrombie & Kent the freedom to expand into other regions and get more market share in high-end leisure.

But, he noted, “they’re about return on investment, so there’s concern in the long term. Will they keep its integrity? Or could it end up like with the Waldorf Astoria, a legendary hotel [that was bought by Chinese acquirer Anbang Insurance Group] that all of a sudden is closing for three years to be made into apartments?”

Helene Eckstein, president of Spectrum Travel Incorporated, suggested that perhaps it will allow A&K to pursue new interest in villas and safari lodges, adding that “it seems like an odd marriage.”

Anbang’s acquisition of the iconic Waldorf Astoria last year and Strategic Hotels and Resorts this year were also part of a trend of Chinese-based companies buying North American hospitality and lodging companies. Other Chinese buyouts include HNA Group’s purchase of Carlson Hotels Inc., parent company of Radisson and Country Inns & Suites brands, and Fosun’s acquisition of Club Med.