Scandinavian budget hotel business Zleep Hotels has revealed a restructure that will separate the brand from the original operating business.
The core Zleep operating business in Denmark is to merge with third party operator Core Hospitality. Meanwhile, the brand will be held purely by Deutsche Hospitality in future.
The merger with Core will create a significant hotel operating business, the fourth largest in the sector in Denmark. The new business, continuing under the Core Hospitality name, will manage a portfolio of 19 hotels in Scandinavia.
Splitting brand from operations
Ownership of the Zleep brand is to rest with Deutsche Hospitality which, since 2019, has held a majority stake in the Zleep business. Deutsche is itself owned by Chinese hotel group H World, and in February 2024 rebranded to H World International. It has a portfolio of brands including Steigenberger, IntercityHotel and Jaz in the City.
“It was my dream to be a white-label hotel operator,” said Peter Haaber, creator of Zleep, and CEO of Core Hospitality. “Now we truly are with five brands – and more to come.”
The revitalised Core now has management of 14 Sleep branded hotels across Denmark. In addition, it has four properties under Marriott brands including two Moxy hotels in Norway, a Fairfield by Marriott and Residence Inn by Marriott in Copenhagen, plus the Kirk Suites in Vejle.
Combining the businesses means developing further economies of scale, and building stronger teams with more opportunities to develop personally. For hotel owners, Core will present a new way to earn a better return on investment, by teaming up with a brand agnostic operator that can efficiently manage everything from a hostel to a full service hotel, with great efficiency.
Zleep was born in 2003, with the concept of offering a great value select-service hotel, combined with Scandinavian design. Zleep keeps it simple with technology-led features, and a simple food and beverage offering that promises hydration and snacks, leaving guests to enjoy meals in local restaurants. Most of the Zleep hotels are new builds, ensuring an efficient room layout and operating model.
Currently, there are 18 Zleep hotels open and operating. The group has expanded from its Danish roots, now offering the brand’s value-driven stays in Spain, Switzerland and the Czech Republic.
A strong pipeline
Looking ahead, several hotels are in development in Germany, with Zleep Berlin airport and Zleep Frankfurt airport both due to launch before the end of 2024. These will be followed by a 150 room hotel in Leipzig, and 204 room property in Hamburg, both expected to see construction completed in 2025; while a further hotel in Berlin West is in development. In addition, a further Zleep site has been secured in Denmark, with a 133 room property in the Glostrup district of Copenhagen. This will be the brand’s seventh property in the city, joining hotels at key locations including the airport, the arena and central districts.
Zleep has also launched a long stay offering, Zleep Living, at three of its hotels. Larger rooms feature a small kitchen with fridge, sink and microwave. At the Vejle hotel, Zleep also offers triple, family and large family units, suitable for groups travelling together.
