Warsteiner Gruppe
Stephan Fahrig - Warsteiner
According to CFO Stephan Fahrig, “The sale of the Welcome Hotels group is only one of several options and will only be carried out if the strategic opportunity,the potential buyer, the structure of the transaction and the priceoutstrips the other perspectives."
Traditional German brewery group Warsteiner is exploring strategic options for its Welcome Hotels subsidiary, including a potential sale of the unit which owns and manages 17 three- and four-star hotels across Germany. The hotels ares strongly focused on business travel and conference management.
Warsteiner, which is based in the picturesque Sauerland region in central Germany and is owned and run by the ninth generation of the Cramer family, said it aims to capitalise on opportunities from current high demand for German hotels.
The company has now mandated the Frankfurt-based investment advisory von Rothschild with evaluating the potential for the hotel division, and at the end of June sent out an exposé to domestic and international investors. While selling is an option, it said, the firm is also reviewing other strategies, including a significant expansion of the unit.
According to CFO Stephan Fahrig, “The sale of the Welcome Hotels group is only one of several options and will only be carried out if the strategic opportunity, the potential buyer, the structure of the transaction and the price outstrips the other perspectives."
A report in the Westfalenpost suggested that among those expressing keen interest in the Welcome hotels is the Düsseldorf-based Lindner Hotel Group. Lindner already operates 34 hotels in the three- to five-star category across Germany and would be ranked in the Top Ten hotel groups nationwide, with a reputation for originality and innovation. The group was founded in 1973 and had a turnover in 2013 of €172m with 2,000 employees.
Welcome Hotels, which was founded by Warsteiner in 1998, last year generated €62m revenues, 3% up on 2013, while the company says the hotel division is profitable. A decision on future strategy will be taken before year-end.
Separately, a new study published by research group MKG Hospitality for business publication Manager Magazine shows that the number of hotel rooms run by chains in Germany has risen from 160,500 in the year 2,000 to now 253,000. About 40% of these belong to the ten biggest brands. Heading the list is Best Western with 19,000 rooms, followed by Mercury (15,364 rooms) and IBIS (11,500). Then comes Maritim (10,505), NH Hoteles (10,438), Motel One (10,180), IBIS Budget (7,671), Leonardo (7,588), B&B (7,087) and Steigenberger (6,490).
