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Egypt’s Tourist Conglomerate, Travco Group, Acquires Germany’s
Family Owned Hotel Group, Steigenberger
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by Andreas Augustin - August 20, 2009 

The battle is over: Travco Group from Egypt and Grupo Iberostar from Spain were both trying to get the main share of Germany’s traditonal hotel group, Steigenberger. The Steigenberger family headed by Anne-Marie Steigenberger, the founder’s wife, and her daughters Christine Steigenberger, Claudia Steigenberger and Bettina Leitgeb, has sold 99.6 percent retaining only three hotel properties: the good old flagship of the group Frankfurter Hof in Frankfurt (A Select Member of The Most Famous Hotels in the World), the Steigenberger Airport Hotel and the Hotel Belvedere in Davos, Switzerland. 

On Friday 20 August Travco Group International Holding S.A.E. headquartered in Cairo, got the deal. It is Egypt’s leading tourist conglomerate, owner of a fleet of Nile ships and three hotel brands with 43 hotels,  took over the entire 99.6 percent share of the Steigenberger family. The agreement is valid from today. In terms of scope, the deal is comparable to the sale of 54 Astron Hotels to NH from Spain in 2002. 

Travco Group is backed by Egypt’s leading integrated travel and leisure group, which generated 0.6 billion euros of consolidated turnover last year. In 1979, the conglomerate was founded by Hamed El Chiaty, an Arabian businessman who is both Chairman and CEO.

Travco has a well-developed network in Germany: Together with TUI, he shares a company for Iberotel Egypt, in which both parties hold 50 percent. In addition, El Chiaty holds 3.01% of TUI AG. However, TUI is not involved in the current Steigenberger deal. Hamed El Chiaty is expected to possess the financial power to bring the currently weak Steigenberger back to its traditional grandeur. He acquired the contracts, the brands and the management. In the recent past the company had sold signature htoels such as  the Badischer Hof in Baden-Baden and Duisburger Hof in Duisburgas well as the Steigenberger Bad Axelmannstein in Bad Reichenhall. 
 

Press Release Issued August 20, 2009

The Egyptian tourism group TRAVCO Group International Holding S.A.E. 
acquires the hotel Company Steigenberger Hotels AG

FRANKFURT, [August 20, 2009] – Steigenberger, a leading European hotel Company based in Frankfurt, has completed its process of strategic repositioning that has started in 2008. With the Egyptian tourism group Travco Group International Holding S.A.E., owned by Hamed El Chiaty and his family, a new partner has been found for the hotel business of Steigenberger Hotels AG as of today, comprising the brands “Steigenberger Hotels and Resorts” and “InterCityHotel”. The new partner will continue to pursue and further develop the long-term targets of the Company. In addition to hotels and Nile cruise ships, Travcos business activities also include complete tourism services. The parties have agreed not to disclose the price of the transaction.

After a period of consolidation of the hotel portfolio, international expansion is the next strategic stage for the Steigenberger Hotel Group. The Steigenberger Family, the previous owner, is convinced that this key element of the initiated strategy, as well as an improved brand awareness and quality leadership, can be realized easier with a strong international partner. In the family-run company Travco, which is, inter alia, already operating an own hotel chain, Steigenberger has found a partner who appreciates the long and proud tradition of this German Company which was founded by Albert Steigenberger in 1930 and successfully developed by his son Egon Steigenberger. In line with this tradition, Travco is committed to continue Steigenberger’s plans for the future maintaining the excellent German hotel culture of Steigenberger.

“We want to secure Steigenberger’s future in the long run. In Travco we have found an experienced partner in the hotel industry, which fully supports our initiated strategy. The international hotel and travel services of TRAVCO enable us to offer our guests a new world of travel destinations. The enlarged hotel network creates new experiences and career opportunities for our employees,” said André Witschi, Chief Executive Officer of Steigenberger.

Steigenberger will be the stepping stone of Travco’s hotel presence, as well as its entry into the city hotel business, particularly in the German, Austrian and Swiss markets, and will allow to further strengthen the Company’s positioning in quality segments. The two hotel brands, “Steigenberger Hotels and Resorts” and “InterCityHotel”, which have been established especially in German speaking regions and have access to a wide, trusted and long-standing customer base, will perfectly complement Travco’s product and geographical set-up. The mostly complimentary businesses of the two companies will allow for cross-selling opportunities across the brands and further economies of scale. Travco fully supports Steigenberger management’s internationalisation efforts and both companies firmly believe to be able to accelerate these efforts through Travco’s existing international network.

“This is a very important strategic step on our long-lasting and continuous course for growth, which positions us as a global player in the tourism and hospitality industries and allows us to offer an even greater and more appealing value proposition to our customers,” says Hamed El Chiaty, Chairman & Chief Executive Officer of Travco. “In addition to the clear strategic benefits, we will aim at increasing our joint added-value through accessing new growth opportunities and realising operative synergies. At a particularly challenging time for the entire tourism industry, this decisive move strengthens our leadership claim within the leisure business. Together we will shape the hotel industry in Europe and the Middle East for the years to come. By combining Steigenberger and TRAVCO, two traditional family businesses come together.”

 
Steigenberger Hotel Group Corporate Communications
Angelika Heyer
Lyoner Straße 40  60528, Frankfurt/Main, Germany
Tel.: +49 69/665 64-422
E-Mail: Angelika.Heyer@steigenbergerhotelgroup.com

Travco Group

Founded in 1979, the company counts 16,000 employess today working in more than 60 companies forming Egypt’s leading travel and leisure group. In 2008, Travco Group companies handled more than 1.3 million tourist arrivals into Egypt (www.travco.com). 

  • Founder and CEO:  Hamed El Chiaty. 
  • Consolidated revenues 2008: 4.8 billion EGP (about 600 million Euro). 
  • Total Assets in 2008: 10 billion EGP (about 1.2 billion Euro). 
  • Hotels: 43 hotels and resorts plus 9 projects underway (total capacity 10,500 rooms in Egypt, UAE and Maldives. Brands: Jaz, Iberotel, Sol Y Mar. 
  • Cruise Ships: 22 cruise ships on the nile plus 3 ships in the pipeline (total 1,300 cabins). 
  • Buses/Cars: over 1,000 vehicles in operation, e.g. limousines and rental cars. 
  • Other services: aviation ground handling services, airline representations, ticket offices throughout Egypt, land and real estate development. 
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Contact:

Andreas Augustin
president@famoushotels.org

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Also See: Steigenberger Hotel Group Hopes to Sharpen the Brand Profile; Dynamic Approach to the Future / December 2008
Steigenberger Hotel Group (82 Hotels) Achieved Record Results in 2006; Six New Steigenberger Hotels Opened in 2006 / April 2007
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