Egypt's Travco Sells Steigenberger for €700 Mln to Chinese Co.

Egypt's travel and tourism company Travco Group sells the Steigenberger hotels  to the Chinese hotel operator Huazhu for 700 million euros.

Parent company Deutsche Hospitality includes a total of 118 hotels in 19 countries under the brands Steigenberger, IntercityHotel, MAXX, Jaz in the City and the Danish chain Zleep Hotels.

In Switzerland, the Group operates two hotels, Grandhotel Belvedere in Davos and Bellerive au Lac in Zurich, and another one to be opened next year at the Airport. Also, 36 more hotels are already under construction.

According to Zimmer, Huazhu is the ninth largest hotel operator in the world, owning more than 5,000 hotels in 400 cities.

"The acquisition of German Hospitality accelerates Huazhu's growth strategy, driving sales growth in the upscale and luxury segment in Asia, including China, and helping to expand its international presence," Huazhu Group CEO Jenny Zhang said, adding that the group will stand for European hospitality, German quality and Asian speed.

The company was founded in 1930 by Albert Steigenberger. Over the past few years, several hotels were opened in Egypt and other Arabic states, such as Dubai, and Oman. In mid-2009, the Egyptian travel and tourism company Travco Group acquired Steigenberger Hotels.