Steigenberger Sold To Egypt's Travco Group International

Egyptian travel company Travco Group International has acquired upscale German hotel company Steigenberger Hotels in a move to globally expand its brands.

The two companies announced the deal Aug. 20 without disclosing terms. Frankfurt-based Steigenberger Hotels consists of 81 hotels: 50 under the upscale and luxury Steigenberger brand and 31 under the select-service InterCityHotel brand. Its hotels are located in Germany, Austria, Switzerland, Italy, the Netherlands and Egypt.

Travco, which reports assets of more than €1.25 billion, already has a foothold in the hospitality business, with a portfolio of 43 hotels under the Jaz, Iberotel and Sol Y Mar brands in Egypt and the United Arab Emirates.

The company's assets also include a fleet of 22 cruise ships and a planned low-cost airline to be launched later this year.

Travco said acquiring Steigenberger now gives it immediate access the German, Austrian and Swiss markets, particularly urban locations, and it is planning to cross-sell across both company's brands.

"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," Travco chairman and CEO Hamed El Chiaty said in a statement.

Steigenberger CEO Andre Witschi said a strong international partner was necessary to expand the brand and that the deal "fully supports our initiated strategy. The international hotel and travel services of Travco enable us to offer guests a new world of travel destinations."