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.