Chinese hotel operator Huazhu Group has reached an agreement to acquire all shares of German-based hotel group Deutsche Hospitality through the former’s wholly-owned subsidiary China Lodging Holding Singapore, Invest-Gate reports.
“The acquisition of Deutsche Hospitality accelerates Huazhu’s expansion strategy, driving revenue growth in the upscale and luxury segments in Asia, including China, while expanding Huazhu’s international footprint,” according to an official statement.
Nasdaq-listed Huazhu operates 18 brands across market segments covering the economy to upscale and servicing the needs of business and leisure travelers, the statement added. In addition, Deutsche Hospitality operates 118 hotels with 36 hotels under development in 19
countries on three continents, while having a worldwide expansion plan to reach 250 hotels by 2024.
Qi JI, founder and executive chairman of Huazhu Group, said, “This acquisition is an important milestone in our global growth strategy. Deutsche Hospitality is a perfect strategic fit and we expect competitive advantages for both companies. The brands of Deutsche Hospitality will enhance the offering of Huazhu and its operating capabilities in the high-end European hotel market.”
Jenny ZHANG, CEO of Huazhu, commented, “Deutsche Hospitality and its brands will maintain their distinctive personality and individuality while benefiting from Huazhu’s leading technology, advanced innovation abilities, strong partnerships, loyalty program, effective sales and marketing support, solid global distribution network and strong presence in the fast-growing Chinese market. I envision the merger of Deutsche Hospitality and Huazhu will create the foundation of a global hotel group that seamlessly combines European hospitality, German quality, and Asian speed.”