Rezidor has completed the acquisition of a 49 per cent stake in the hotel brand Prizeotel and has secured further rights including the acquisition of the remaining 51 per cent in 4 years from now.
The hotel brand is almost unknown – it has only three hotels in Germany with a total of 555 rooms in Hamburg, Hannover and Bremen. and one in under development. Nevertheless Rezidor hopes it will allow it to expand quickly at the economy end of the market.
Speaking with Business Traveller at the International Hotel Investment Forum (IHIF) in Berlin, Wolfgang M. Neumann, President & CEO of Rezidor said,
“There will be a focus initially on Germany, Austria and Switzerland [ for expansion], because they are all German-speaking and it’s where the core expertise of Prizeotel is so we can focus on building scale in those countries, then BeNeLux as a secondary territory. The aim is to not conquer all kinds of countries. The economy segment is all about scale and about focussing on specific countries where that segment present opportunities.”
Neumann said ultimately, he believed the "legs and ambition to grow internationally and that’s what we hope.”
“It ideally complements our compelling brand portfolio currently ranging from mid-scale to luxury, and facilitates our responsiveness to the evolving needs of our guests," said Neumann
“The acquisition allows us a fast-paced entry to the economy segment – an increasingly attractive sector due to its rapid development opportunities and resilience to the economic cycles."
The brand was founded by Marco Nussbaum and co-created with New York-based industrial designer Karim Rashid.
The hotels have been "exclusively designed by Karim Rashid" and have "...an appealing, futuristic look and put a focus on technology as well as hassle-free service for business and leisure guests."
An extension of the property in Hamburg and a second hotel in Hamburg-Reeperbahn were also announced today at IHIF.