Back to the complete issue
Thursday, 7 November 2019

Travco to sell Deutsche Hospitality group to China’s Huazhu in landmark USD 781 mn all-cash transaction

M&A WATCH- Travco to sell Deutsche Hospitality group to China’s Huazhu in landmark USD 781 mn all-cash transaction: Hamed El Chiaty’s Travco Group will sell its portfolio company, Steigenberger-owner Deutsche Hospitality, to China’s Huazhu Group in a EUR 719.2 mn cash transaction, the German company announced in a statement on Monday. The agreement was reached earlier this week and is likely to close in early 2020 following regulatory approval. The story is getting international ink in Reuters and from travel industry bible Skift.

El Chiaty to retain ownership in Deutsche Hospitality JV:  The statement said that the current ownership in the company’s Middle East JV Steigenberger Middle East will “remain unchanged.”

Ambitious targets: Huazhu said that it will help the Frankfurt-based company attempt to more than double its hotels to 250 by 2024 from 118 currently, close to a dozen of which are in Egypt. Deutsche Hospitality’s brands include Maxx by Steigenberger, Jaz in the City, IntercityHotels and Zleep. The Chinese buyer’s CEO Jenny Zhang said the acquisition will not entail any job cuts.

Background: Travco acquired Deutsche Hospitality in 2009 at an undisclosed value.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.