Rezidor Hotel Group is making its entry into the economy hotel segment with the acquisition of a 49% stake in German budget design chain, prizeotel for £14.7 million. Additionally, the group has secured further rights including the purchase of the remaining 51% share in prizeotel in four years’ time. prizeotel currently has three hotels in operation across Germany (555 rooms), in Bremen, Hamburg and Hannover, and one property in its development pipeline. The deal is expected to close in the next few weeks. “Combining and cross-fertilizing prizeotel’s market and brand knowledge with Rezidor’s international expertise will unlock value for both organisations. We will initially grow the German network and target key cities in Austria, Switzerland and Benelux primarily through leases, but also management agreements,” commented Elie Younes, Executive Vice President and Chief Development Officer for Rezidor. “prizeotel will offer a unique investment proposition with its compelling design, value-engineered development costs, high operating efficiencies and an optional turn-key construction solution,” he added. HVS was pleased to have advised Rezidor Hotel Group on certain aspects of this acquisition.
HVS EMEA HOSPITALITY NEWSLETTER.