Huazhu Group Limited announces that the company, through its wholly owned subsidiary China Lodging Holding Singapore, has entered into a share purchase agreement to acquire all shares in Steigenberger Hotels Aktiengesellschaft, Germany, for a base cash consideration of about €700 million, which is subject to net working capital and other post-closing adjustments as provided in the agreement. The acquisition is subject to regulatory approvals and certain other closing conditions, and is expected to close on or around early next year.
Huazhu's management will disclose in more details on the upcoming Q3 2019 earnings call scheduled at 8 p.m. ET, Tuesday, November 12, 2019 following the announcement.
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. Steigenberger Hotels & Resorts has 60 hotels housed in historic traditional buildings and lively city residences and offers health and beauty oases set at the very heart of nature. MAXX by Steigenberger is a new and charismatic concept, which places the focus on the essential in accordance with its motto “MAXXimize your stay”. Jaz in the City branded hotels reflect metropolitan lifestyle and draw upon the local music and cultural scene. IntercityHotel offers more 40 upper mid-range urban hotels, all of which are located within easy walking distance of railway stations or airports. And Zleep Hotels – a well-known and successful hotel brand in Scandinavia which offer service and design at a great rate for the many. Deutsche Hospitality’s history dates back to 1930 when German entrepreneur Albert Steigenberger took over his first hotels and built it into a consortium under the Steigenberger brand. In 2016, the Steigenberger Hotel Group was renamed Deutsche Hospitality.