CoStar Group, a provider of commercial real estate information, analytics and online marketplaces, will acquire STR, the lodging industry data company, for $450 million in cash, subject to adjustments in the definitive agreements. The transaction is expected to close in the fourth quarter of this year.
Founded in 1985 as Smith Travel Research, STR has grown its data assets, product offerings and geographic reach over the years. It now aggregates data from over 65,000 hotels worldwide in over 180 countries. Its flagship product, the STAR report, provides hoteliers with benchmark information in more than 1.2 million monthly reports. In an announcement, CoStar said STR will complement its existing offerings and empower it to provide valuable new services to investors and service providers in the hospitality industry. Among potential growth areas are creating hotel data and analytics in a CoStar suite; expanding internationally; building and selling new products; and extending benchmarking to other areas.