Welcome Hotels


Welcome Hotels

Welcome Hotels consists of modern, well-maintained three- and four-star hotels across Germany which cater to a mixed client base of business travellers, events and leisure customers. Each year Welcome Hotels' guests spend around 150,000 nights with them and they host over 5,000 events a year.


Investment strategy

Asset backed: In 2016 Terra Firma acquired 12 three- and four-star hotels from Haus Cramer Group in Germany. As part of the transaction, Terra Firma acquired several of the freehold titles to these hotels. 

Fundamental change:  Welcome Hotels was acquired from a family in Germany which had decided to focus on its core brewery business. The hotel market in mid-tier German cities is fragmented, consisting primarily of small-scale independent groups; this presents an opportunity to expand Welcome Hotels’ presence across the region. There is also significant scope to develop the brand further and increase its recognition.

Essential industries:  Over the past decade, the German hotel market has shown significant growth and a high degree of resilience, particularly during the financial downturn after 2008. This robust performance has been driven by the highly domestic nature of the German hotel market.

The majority of Welcome Hotels’ customers are business clients from the German ‘Mittelstand’, small-to-medium enterprises and larger, usually family-owned organisations which form the backbone of the domestic German economy. The Mittelstand is spread across the country and is highly present in second- and third-tier cities, which leads to high demand in these areas. 

Creating value 

  1. Transforming strategy

    • Terra Firma is building a scalable platform with a broad focus on the German Mittelstand market. This will be developed through a customised strategy for each individual hotel to cater to its targeted customer groups.
    • By enhancing and implementing a more targeted offering across the portfolio, Terra Firma aims to improve room rates and occupancy. As such, the group will continue to attract business travel and events, which provide highly stable revenue streams, while enhancing its leisure offering to improve occupancy throughout the week and calendar year.
  2. Strengthening management

    • Upon acquisition, Terra Firma appointed a new CEO, CFO and Head of Sales to establish a sustainable growth platform.
  3. Developing through capital expenditure

    • Terra Firma has developed a maintenance and capital expenditure programme to refresh the current hotel portfolio, which will enhance the customer experience and drive operational improvements.
  4. Building through mergers and acquisitions

    • Welcome Hotels’ platform provides an opportunity to consolidate a fragmented mid-tier hotel market and benefit from efficiencies of scale.
  5. Lowering the cost of capital to create extra upside

    • As the group’s scale increases, Terra Firma aims to pursue financing options to lower the cost of capital.

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Welcome Hotels


guest nights each year


events hosted