2 November 2016
Terra Firma has agreed to acquire Welcome Hotels, a portfolio of German hotels.
The Welcome Hotels portfolio, which Terra Firma is acquiring from Haus Cramer Group, consists of modern, well-maintained three- and four-star MICE (meetings, incentives, conferences and exhibitions) hotels that are located across Germany, and which cater to business travellers and corporate events. Through the transaction Terra Firma will acquire 12 hotels. Over the past decade, the German hotel market has shown significant growth and a high degree of resilience, particularly during the financial downturn.
This deal complements Terra Firma’s experience and track record of investing in asset-backed businesses within Germany. Terra Firma previously owned Deutsche Annington (now Vonovia), which became the largest private residential landlord in Germany, and Tank & Rast, the leading operator of German motorway service stations. Across both businesses, Terra Firma invested a total of more than €1 billion to improve and grow the businesses and improve the offering for residents and customers. The transaction is subject to customary regulatory approvals and is expected to complete in the fourth quarter of 2016.
Guy Hands, Chairman and CIO of Terra Firma, said: “We are very pleased to acquire Welcome Hotels. Under the Haus Cramer Group, Welcome Hotels have earned a reputation as a well-run, customer-focused business. Terra Firma will be investing significantly in the business to maintain and enhance the customer experience, and we will also look to grow the business further on the back of its strong existing estate.”
Sinje Vogelsang, spokesperson for the Haus Cramer Group, said: “After years of growth, the Welcome Hotels Group has become a significant player in the German hotel industry. We are pleased to have agreed this transaction with Terra Firma, who will expand and develop the brand in the future.”
Christian Kettlitz, CEO-designate of Welcome Hotels Group, said: “I am excited by the opportunity to lead Welcome Hotels Group in the next stage of its growth and development, with the support of Terra Firma, a leading investor in the region. We will work in close co-operation with Welcome Hotels’ first-class employees, the Haus Cramer Group, and all of our partners and suppliers to make the acquisition process a success for the business, while continuing to deliver the first-class service that our customers expect.”
Financial terms were not disclosed.
Notes to Editors
Under the terms of the transaction, Terra Firma will also operate one additional hotel under a management agreement.