Ni hao, Steigenberger!: Chinese group takes over Deutsche Hospitality
Huazhu Group buys German Hospitality. (Photo: Steigenberger)
China’s Huazhu Group buys Germany’s legendary Deutsche Hospitality group, uniting its brands under one umbrella.
Chinese hospitality company Huazhu Group is now the proud owner of German hotel group Deutsche Hospitality, which operates a number of brands which will now come under the ownership of Huazhu. We find out more.
Accor affiliate Huazhu acquires Deutsche Hospitality
One of China’s leading hotel groups, Huazhu Group, has purchased German hotel company Deutsche Hospitality through its Chinese subsidiary China Lodging Holding Singapore. The acquisition will mean that Deutsche Hospitality’s five brands — Steigenberger Hotels & Resorts, MAXX by Steigenberger, Jaz in the City, InterCityHotel and Zleep Hotels – will now be owned by Huazhu, bringing them all together under one hospitality umbrella.
This collection of brands is a good fit for Huazhu, which aims to offer its guests a wide range of travel possibilities and forms part of its growth strategy, which aims to grow its luxury segment outside Asia.
Huazhu’s founder Qi Ji said, “This acquisition is an important milestone in our global growth strategy. Deutsche Hospitality is a perfect strategic complement and we expect competitive advantages for both companies. The brands of Deutsche Hospitality will expand Huazhu’s offering and operational capabilities in the European high-end hotel market.”
Chinese hotel groups’ international portfolios
Huazhu Group was established in 2005, and since its inception has grown to operate more than 4000 hotels in 400 cities. Its brands in China include Grand Mercure, Joya, Blossom Hill, Novotel, Mercure, Manxin, Ji, Crystal Orange, Orange Select, CitiGO, Starway, ibis Styles, HanTing Plus, HanTing, Elan and Hi. With the addition of Deutsche Hospitality’s five brands, Huazhu will have a complete portfolio which will be able to cater to guests across every segment, from budget to upscale and luxury. Deutsche Hospitality has 118 operational hotels, with a further 36 properties in the pipeline. It announced plans to expand its portfolio to 250 hotels by 2024, an aim which the sale of the group to Huazhu achieves.
Deutsche Hospitality’s board said in a statement, “Huazhu is one of the fastest growing companies in the world. We share the same values as Huazhu. It is important to both of us to provide our customers with a quality experience, so we are constantly striving to improve our offerings and services and to streamline our processes. Both Huazhu and the German Hospitality have strong and recognized brands. We will maintain these while accelerating growth. We look forward to becoming part of the Huazhu Group.”
Let’s take a look at a few hotel projects by Deutsche Hospitality:
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