Vienna, October 1, 2018 – UBM hotels Management GmbH, a subsidiary of Europe’s leading hotel developer UBM Development AG, and Vienna International Hotel management AG (Vienna House), Austria’s largest hotel company, have signed a joint venture agreement with the aim of growing together in Central Europe with new franchise hotel projects.

The business purpose of the joint venture is the management as operating company of new projects in Central Europe under international franchise brands. The 50/50 joint venture with registered seat in Munich will be established retroactively from 1 January 2018 with the name UBM+VH Hotels GmbH.

“This forward-thinking joint venture pools the strength of two partners with many years of experience on the market. I see enormous potential for this partnership to complement each partner’s own growth strategies,” says Rolf Hübner, managing director of UBM hotels Management GmbH. Rupert Simoner, CEO of Vienna House, adds: “I look forward to our work together and see the joint venture as a fantastic step in the right direction, allowing us to develop another business field while continuing to pursue a clear brand strategy.”

The joint venture is focused on the conclusion of new hotel lease agreements under franchise arrangements with third parties, for the time being in the core markets of Germany, Austria, Poland and the Benelux countries. Both partners are responsible for the identification of new projects. In the hotel operation, they share responsibilities in accordance with their core competences, with Vienna House in charge of the operating hotel management and UBM hotels handling the asset management.

“The possibility of working with an experienced partner to manage hotels under franchise arrangements expands the range of services of UBM hotels,” says Hübner. “We expect that this new partnership – in addition to our proven model of hotel operation under international management agreements – will generate impulses for further growth.”

The management of UBM+VH Hotels GmbH consists of Johanna Weichselbaumer and Martin Ykema from Vienna House as well as Rolf Hübner and Erwin Zeller from UBM hotels.

The first establishments to be operated by the joint venture are the Holiday Inn Munich Leuchtenbergring and Holiday Inn Munich Westpark. The 279-room property at Leuchtenbergring was completed in May 2018 following intense renovation and extension works during which the entire hotel, including guest rooms, meeting area, lobby, restaurants and underground car park, were revamped and expanded. The 207-room Holiday Inn Munich Westpark was already remodelled with the brand-typical open lobby concept in August 2017.