NEW YORK & ATLANTA - Blackstone Growth and affiliated funds have acquired a majority investment in M3, the leading hospitality-focused accounting software provider in North America. This partnership, announced today, aims to accelerate M3's growth, enhancing product development and software adoption. The Asian American Hotel Owners Association (AAHOA) is also making its inaugural strategic investment alongside Blackstone.
M3, established in 1998 by John McKibbon, has evolved into a premier software platform, offering accounting, labor management, and business intelligence to over 8,000 properties across North America. The company has been recognized as the top hotel accounting software and financial reporting provider for four consecutive years by HotelTech Report.
John McKibbon expressed confidence in Blackstone's hospitality expertise as a catalyst for M3's innovation and growth. Ramzi Ramsey, a Managing Director at Blackstone, highlighted M3's role in supporting the professionalization and scaling of businesses within the hospitality sector.
M3's CEO Allen Read and President Casi Johnson reiterated their commitment to customer support and expressed enthusiasm for partnering with Blackstone to further scale M3's vision, team, and culture. Blackstone Principal Kevin Chang praised M3's robust technology and customer-centric approach, expressing eagerness to support its next growth phase.
AAHOA Chairman Miraj S. Patel views the investment as significantly beneficial for AAHOA members and the hospitality industry, providing access to advanced technology and solutions to drive growth and operational efficiency.
The terms of the transaction have not been disclosed. M3 was legally advised by Carlton Fields, P.A., with transactional assistance from Houlihan Lokey (NYSE:HLI), while Blackstone was advised by Evercore and Kirkland & Ellis LLP.
M3's platform is designed to enhance cost savings, revenue, and business insight for the hospitality industry, boasting a 95 percent customer retention rate. Blackstone is the world's largest alternative asset manager, with over $1 trillion in assets under management. AAHOA represents nearly 20,000 hotel owners in the U.S., contributing significantly to the nation's GDP and employment.
The information in this article is based on a press release statement.
In other recent news, Blackstone Group (NYSE:BX) is contemplating the sale of Clarion Events, which could value the company at approximately $2.6 billion. The group has engaged in preliminary discussions with potential buyers, including private equity firms CVC and KKR. Clarion Events has seen a significant revenue increase to £432.9 million in the 12 months leading up to January, up from £257 million the previous year.
In the real estate sector, Equity Residential (NYSE:EQR) has agreed to purchase 11 apartment properties from various Blackstone real estate funds for approximately $964 million. The acquisition is set to be finalized in the third quarter of 2024.
Blackstone has also acquired a majority investment in Westwood Professional Services, Inc., a prominent engineering and design firm. The transaction sees Blackstone's private equity funds taking over from Endurance Partners, while Westwood's management and employee shareholders will maintain a minority interest.
Meanwhile, private equity firm Carlyle Group (NASDAQ:CG) experienced an 11.7% decrease in its second-quarter distributable earnings year-on-year to $343 million. However, the firm saw a record high of $273 million in fee-related earnings, a 32% increase from the previous year.
Lastly, investment firm Pondera Holdings is exploring potential options for Whisker, the producer of automated cat litter boxes, which could include selling its majority share. The sale might place Whisker's value at approximately $1 billion.
InvestingPro Insights
As Blackstone (NYSE: BX) takes a majority stake in M3, the investment community is closely monitoring the firm's financial health and market performance. According to InvestingPro data, Blackstone has a robust market capitalization of $166.31 billion. A key indicator of the company's valuation, the P/E ratio, stands at 49.34, suggesting investors are willing to pay a premium for Blackstone's earnings. This is further highlighted by a Price / Book ratio of 24.34, indicating a high valuation of the company's net assets.
InvestingPro Tips reveal that Blackstone's net income is expected to grow this year, aligning with the firm's strategic investment in M3 to bolster its position in the hospitality sector. Additionally, the company has maintained consistent dividend payments for 18 consecutive years, reflecting a commitment to shareholder returns. This is particularly relevant for investors looking for stable income streams alongside potential capital gains.
For those seeking a deeper dive into Blackstone's financial performance and future prospects, InvestingPro offers additional tips and metrics. Currently, there are 9 more InvestingPro Tips available, providing a comprehensive outlook for informed investment decisions. For more detailed insights, visit https://www.investing.com/pro/BX.
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