Thai property developer U City has agreed to purchase Vienna House and its hotel management company for USD 350 million. The deal will also see the company acquire a total of 8 hotels in Europe from Austrian and Polish-listed property developer Warimpex Finanz- und Beteiligungs AG. The transaction should be completed in July, according to a U City press release.
“This is U City’s strategic acquisition to diversify our hotel investment portfolio beyond Asia across to Europe in both established and fast-growing markets. This will add another 4,100 owned hotel keys at THB 2.6 million per key to our portfolio as well as international brands such as: upscale, design brand Vienna House; the smart-casual Vienna House Easy brand; the vibrant, business-inclined angelo by Vienna House brand; and the upscale, modern, designer andel’s by Vienna House brand, which will be a platform for further growth,” says Piyaporn Phanachet, CEO of U City.
U City will take over the Vienna House hotel portfolio as well as its hotel management company. That portfolio contains 16 hotels located in cities and towns across Germany under various Vienna House brands. The 8 hotels from Warimpex are located in cities and towns in the Czech Republic, Poland and Romania. The hotel management company operates all 24 of the hotels bought by U City as well as an additional 12 third party hotels in Europe.
“The transaction is in line with U City’s strategy to build a portfolio of income generating assets and achieve broader geographic diversification. The majority of the assets and management contracts are located within Germany, Poland and the Czech Republic and we have confidence in the capability of Vienna House’s management team to build the business further. We also look forward to potentially cooperating with Warimpex in the future,” says Daniel Ross, Director of U City Public Company Limited.
Featured Image: www.viennahouse.com
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