Viacom International Media networks, a unit of Viacom Inc. (VIA.B, Financial), is planning to expand the hotel chain of one of its most popular brands, Nickelodeon, under the merger done with Karisma Hotels & Resorts. TheNickelodeon hotels are aimed at becoming one of the Gourmet inclusive chains of luxurious and family friendly properties of Viacom. Nickelodeon is a world-renowned multimedia entertainment brand for family and kids alike. The first one has been planned to be called Nickelodeon Punta Cana in the Dominican Republic by end of 2016.
The association with Karisma Hotels & Resorts
Based in Miami, Karisma Hotels & Resorts is a popular award-winning hotel chain running successful businesses in Latin America, the Caribbean and Europe, with a strong portfolio including names like El Dorado Spa Resorts & Hotels, Azul Hotels & Villas by Karisma, Generations Resorts by Karisma Allure hotels owned by Karisma and Karisma Hotels Adriatic. On the other hand, Viacom International media networks is a proud partner of some of the most popular entertainment brands like MTV, Nickelodeon, Comedy Central, BET, Paramount Channel, Channel 5 in the UK, VH1, Viva, Colors, Spike Game one and Tr3s: MTV, Musica Mas. The association between the two is seen as equally beneficial for both of them. While one will gain leverage from the popular brand during peak vacation seasons as it’s a family and kids’ centric brand, the other has a great opportunity to expand its hospitality industry portfolio by merging its existing brand.
Under the merger, the very first Nickelodeon hotel will come up in Dominican Republic by the end of 2016 by the name of Nickelodeon Punta Cana. As per the company officials, the second in line will be opened in Mexico. The Nickelodeon experience can also be enjoyed at Azul Hotels by Karisma including Azul Beach Hotel, Azul senator Hotel and Azul Five’s hotel in the Riviera Maya, Mexico City by summer of 2015.
Viacom tried associating with Marriott International (MAR, Financial) and a hotel developer in 2007 as well to kick start the Nickelodeon theme hotel project, but things couldn’t go as planned due to the financial crisis of 2008. The companies abandoned the plan thereafter.
The Nickelodeon experience
The deal has been signed to leverage the high demand of ultra-luxurious hotels for family vacations and new experiences. A theme-based hotel is a brand new experience that guests can enjoy and can become a lifetime memory for them. The companies involved plan to feature popular Nickelodeon characters like SpongeBob, Square Pants, Dora and the Teenage Mutant Ninja Turtles making appearances in hotel premises and offering a fun-filled experience for its guests.
Not for fun alone, the upscale resorts are going to offer a gourmet inclusive experience to its guests making them most comfortable by giving them personalized services. Located in the tropical regions, the spacious and luxurious hotels are sure to make the vacations of its guests most memorable and worth revisiting.
Conclusion
While the deal helped Viacom’s shares see a surge of 1.4% closing at $70.70 after the announcement, the company aims at increasing profits through this significant deal. The first Nickelodeon hotel opened in 2005 in Orlando known as Nickelodeon Suites resort; however, the company aims at leveraging much more from the brand Nickelodeon after the merger with a much bigger and a lot more popular hotel chain Karisma.
