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05.11.2019 International

Germans Start Selling Luxury Hotels To Chinese

Germans Start Selling Luxury Hotels To Chinese
NOV 5, 2019 INTERNATIONAL

The Steigenberger Hotel at the German Chancellery in Berlin is one of the showpieces of the German Hospitality formerly known as the Steigenberger Hotel Group.

German quality and Asian speed
This is what the new owners expect from the takeover of the traditional brand. They want to further expand their empire over the next few years.

The Egyptian tourism entrepreneur Hamed El-Chiaty ("Iberotel", "Sol y Mar") sells the Steigenberger umbrella company German Hospitality to the Chinese hotel operator Huazhu, as the new owner announced on Monday.

Further hotels of the holding company
German Hospitality owns a total of 118 hotels in 19 countries under the brands Steigenberger, IntercityHotel, MAXX by Steigenberger, Jaz in the City and the Danish chain Zleep Hotels, which was only acquired last year. A further 36 hotels are being planned or under construction. Steigenberger plans to expand to 250 locations by 2025.

New hotel operator one of the largest in the world

Huazhu, which is listed on the New York Nasdaq stock exchange, says it operates more than 5,000 hotels in 400 cities under 18 brands. According to Zimmern, the company is the ninth largest hotel operator in the world. "The acquisition of "German Hospitality" accelerates Huazhu's growth strategy, drives sales growth in the upscale and luxury segment in Asia, including China, and contributes to the expansion of the company's international presence, the Chinese explained. Jenny Zhang, CEO of Huazhu, said that the group would in future stand for "European hospitality, German quality and Asian speed".

The Steigenberger brand: tradition and modernity

In 2009, the Steigenberger family business was sold to Deutsche Hospitality Limassol, Cyprus. El-Chiaty, who took over the company from its heirs, had preserved and further developed the family's heritage. In the meantime, the brand has almost 90 years of tradition.

The hotel property in the centre of Frankfurt "Frankfurter Hof" is considered to be the "flagship" of the brand. The "Frankfurter Hof" was one of the first hotels next to the European Court in Baden-Baden, to set the direction and standard for the following hotels. Last year, Steigenberger generated sales of 770 (2017: 724) million euros.

Francis Tawiah (Duisburg - Germany)

Francis Tawiah
Francis Tawiah, © 2019

The author has 661 publications published on Modern Ghana. Column Page: FrancisTawiah

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