Posted inTravel & Hospitality

Deutsche Hospitality reveals Middle East expansion plans

Vice president Middle East for Deutsche Hospitality, Siegfried Nierhaus, told Arabian Business four hotels are scheduled to open this year, with further openings planned in the next two successive years

IntercityHotel in Jaddaf Waterfront, Dubai

IntercityHotel in Jaddaf Waterfront, Dubai

German hotel company, Deutsche Hospitality, has revealed plans to increase its portfolio in the Middle East to 20 establishments by 2023.

Deutsche Hospitality has 118 hotels with 36 hotels under development in 19 countries on three continents. Its portfolio currently consists of five brands, Steigenberger Hotels & Resorts, MAXX by Steigenberger, Jaz in the City, IntercityHotel and Zleep Hotels.

The company is currently present in the region with one Steigenberger Hotel, five IntercityHotel hotels and one Jaz in the City hotel.

Vice president Middle East for Deutsche Hospitality, Siegfried Nierhaus, told Arabian Business four hotels are scheduled to open this year, with further openings planned in the next two years.

He said: “We want to have 20 hotels by 2023, a clear statement and a clear target.”

Nierhaus, who took charge of Deutsche Hospitality’s expansion in the Middle East from 2015 to 2017, and took on his latest role in November last year, said they plan to open an IntercityHotel in Jaddaf Waterfront, Dubai, and another IntercityHotel in Muscat by the end of the year; while the Steigenberger Hotel in Doha will be the “flagship” for the brand in the region.

As previously reported, Jaz in the City will open in Deira in 2024, together with partners from the Investment Corporation of Dubai (ICD).

“The Middle East is one of the focus areas. We have four openings to do this year with different brands. That shows that the appetite for our brands is there,” said Nierhaus.

In November 2019, Frankfurt-based Deutsche Hospitality was acquired by Huazhu Group for around $802 million. Huazhu has more than 6,700 hotels in over 400 cities and is one of the top five largest public hotel companies in the world by market capitalisation alongside Marriott, Hilton, Accor and InterContinental Hotels Group.

Siegfried Nierhaus, Vice president Middle East for Deutsche Hospitality

Nierhaus said the company’s inventory has increased to almost 7,000 hotels, while the loyalty membership programme has gone from 50,000 members to 160 million members as a result of the integration.

“The new potential opportunities for everyone in our organisation is just tremendous,” he said.

This includes a target of an additional 500 hotels across Europe and the Middle East by 2025, led by organic growth, takeover of existing hotels and Nierhaus revealed around 400 will come as a result of acquisitions.

He said: “Our CEO and committee are looking into various expansion opportunities which have come in the market due to the recent challenges faced by our industry. If there is an opportunity there, I’m sure we will not hesitate and go and acquire some of the brands which are struggling, and we can help and assist.

“The appetite is there, the willingness is there. Of course it needs to be at the right time and the right price and the German and Asian board is there to approve. But I can tell you as we speak, we have mid-market brands in Europe, which we are ready to sign.”

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