China's hospitality giant Huazhu completes the acquisition of Steigenberger hotels .
China's hospitality giant Huazhu completes the acquisition of Steigenberger hotels .

The Chinese  Huazhu Group, one of the leading international companies in the hospitality sector, has announced the completion of the acquisition of German hospitality group “Deutsche Hospitality”, the parent company of Steigenberger Hotels Group, which is owned by Egyptian businessman Hamid Al Shiti, president of “Travco”.

 The "Huazhu" group said in a statement, that all the shares of "Deutsche Hospitality", which had been announced on November 4, were completed.

 The Chinese group has signed with a banking consortium led by the American bank "JP Morgan Chase", and the German Bank, an agreement to obtain a loan of $ 991 million, to finance the acquisition and other purposes of the group and its subsidiaries.

 Shares of the Chinese group fell by 2%, on Friday, at $ 40.77 per US deposit share, after the announcement of the completion of the deal.

 On November 4, Huazhu announced the purchase of the parent company of Steigenberger Hotels, owned by Egyptian businessman Hamid Al-Shity, the owner of Travco, in exchange for a basic cash amount of 719.9 million euros (795.5 million dollars), while retaining “  The Chitty ”at Steigenberger hotels in Egypt and the Middle East.

 In the same month, Hamid Al-Shiti, head of Egyptian Travco Group, said in an interview with the German “FVW” magazine, that he plans to invest the proceeds from the sale of the German hospitality company “Steigenberger”, and through the “Travco” group, he will continue to invest in Egypt and vacation destinations in Africa and a region  Caribbean Sea.

 The Chinese “Huazhu” is the ninth largest hotel company in the world by number of rooms and the fifth largest company by market value in the world, which has 5,151 hotels with 18 brands in more than 400 cities in 19 countries.

 With the number of hotels managed by "Deutsche Hospitality" 118 hotels, with 5 brands and 36 hotels under construction in 19 countries in Europe, the Middle East and Africa, and with the approaching ninetieth anniversary of its founding, the company plans to increase the number of hotels to 250 hotels in 2024.

Source:  tourismdailynews

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