The Rezidor Hotel Group will soon enter the economy segment by acquiring a 49 per cent stake of Prizeotel. The €14.7 million (US$16.1 million) deal also gives Rezidor the rights to acquire the remaining 51 per cent four years from now.
As a young start-up company, Prizeotel’s portfolio currently consists of three properties in Germany, with one more under development.
Following the purchase, which will be closed during the next few weeks, Rezidor will integrate Prizeotel's sales, marketing and distribution system onto its own platform.
The economy brand will continue to be led by incumbent chief executive Marco Nussbaum. Meanwhile, Rezidor will offer commercial support and implement key business strategies to help accelerate growth opportunities for Prizeotel.
“[The acquisition of Prizeotel] complements our compelling brand portfolio currently ranging from mid-scale to luxury,” said Wolfgang M. Neumann, president & chief executive of Rezidor.
“[It gives] 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.”
Rezidor's portfolio of 430 hotels currently cater to the mid-scale to luxury market segments. It's brands consist of Quorvus Collection, Radisson Blu, Park Inn by Radisson and more.