Huazhu Group to acquire Deutsche Hospitality

6 November 2019

Huazhu Group has announced that its has reached an agreement to purchase all of the shares in Deutsche Hospitality through its wholly owned subsidairy China Lodging Holding Singapore from Travco Travel in a deal worth about €700M. Reuters noted that the price values Deutsche Hospitality at an EBITDA multiple of 17-18 times.

Deutsche Hospitality operates 118 hotels across five brands - Steigenberger Hotels & Resorts, Maxx by Steigenberger, Jaz in the City, Intercity and Zleep Hotel as has 36 hotels under development in 19 countries across Europe, the Middle East and Africa.

In Germany, the company operates 76 hotels with over 13,500 bedrooms under its InterCity, Jaz in the City and Steigenberger brands. There are a further 13 projects in the pipeline for Germany, which if all were to complete would add another 2,128 bedrooms to the total room count.