Huazhu Group, acting through its wholly-owned subsidiary China Lodging Holding Singapore, entered into a share purchase agreement to acquire all shares in Steigenberger Hotels Aktiengesellschaft Germany (Deutsche Hospitality) for a base cash consideration of about €700m. The acquisition is subject to regulatory approvals and certain other closing conditions and is expected to close on or around early next year. Deutsche Hospitality operates 118 hotels and 36 hotels under development in 19 countries in Europe, the Middle East and Africa. Deutsche Hospitality brings together five separate hotel brands under a single umbrella.
Qi Ji, Founder and Executive Chairman of Huazhu Group, said:“Huazhu has enormous respect and admiration, particularly for the prestigious Steigenberger brand. The legendary brand has a tradition for almost 90 years of providing a perfect balance of tradition and modernity to guests from all over the world. The legacy created by a highly respected German family and preserved and enhanced by the current owner and the exceptional management team is at the heart of the appeal of Deutsche Hospitality. Huazhu is committed to fully respecting and embracing the heritage of the company, and working closely with the company’s associates, owners and business partners in helping to write the next chapter. This acquisition is an important milestone in our global growth strategy. Deutsche Hospitality is a perfect strategic fit and we expect competitive advantages for both companies. The brands of Deutsche Hospitality will enhance the offering of Huazhu and its operating capabilities in the high-end European hotel market.”
Jenny Zhang, CEO of Huazhu, said: “We are extremely impressed by the passionate and professional management team, the service levels and the excellent relationship with all relevant partners and stakeholders. We look forward to working with Deutsche Hospitality to expand the high-quality offering and further enhance the experience of guests staying in these hotels. Deutsche Hospitality and its brands will maintain their distinctive personality and individuality while benefiting from Huazhu’s leading technology, advanced innovation abilities, strong partnerships, loyalty program, effective sales and marketing support, solid global distribution network and strong presence in the fast-growing Chinese market
The Executive Board of Deutsche Hospitality said: “Huazhu is one of the fastest-growing hotel companies in the world. We share the same values as Huazhu. We are both truly passionate about offering a high-quality experience to our customers, hence we are constantly aiming for improving our offering and services and innovating our operations. Both Huazhu and Deutsche Hospitality have strong and recognized brands, which we will maintain, while further accelerating their growth. We are very excited to become part of Huazhu Group.”
