Chinese company will buy lodging operator with 118 hotels for about $779 million >>
Huazhu Group Limited, a China-based company, will buy Steigenberger Hotels Aktiengesellschaft, Germany (“Deutsche Hospitality”), for about $779 million. The deal is expected to close early next year. Huazhu is a major hotel operator and franchisor. It operates 5,151 hotels with 504,414 rooms under multiple brands, including Elan Hotel, Starway Hotel, Hi Inn, Han Ting Hotel and JI Hotel. It also has the rights as master franchisee for Mercure, Ibis and Ibis Styles; and co-development rights for Grand Mercure and Novotel in the pan-China region. Most properties are operated under franchise or “manachise” models. Under the manachise model, Huazhu manages hotels through on-site hotel managers appointed by the company while it collects fees from franchisees.
Deutsche Hospitality operates 118 hotels, with 36 under development in 19 countries in Europe, the Middle East and Africa. It has five brands, including: Steigenberger Hotels & Resorts, MAXX by Steigenberger, Jaz in the City, IntercityHotel and Zleep Hotels. The company dates back to 1930.