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
acquires the hotel Company Steigenberger Hotels
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
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
Steigenberger Hotel Group Corporate Communications
Lyoner Straße 40 60528, Frankfurt/Main, Germany
Tel.: +49 69/665 64-422
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
Other services: aviation ground handling services, airline representations,
ticket offices throughout Egypt, land and real estate development.