Rezidor Hotel Group announced its entry into the economy segment of the hospitality market with the acquisition of a 49 percent stake of prizeotel, a young hotel chain with three properties in Germany, and one currently under development in Hamburg. Rezidor paid $16.3 million for its stake, and secured further rights to acquire the remaining 51 percent four years from now.
“We are delighted to partner with prizeotel, an entrepreneurial and creative economy brand,” says Wolfgang M. Neumann, president and CEO of Rezidor. “The acquisition allows us a fast-paced entry to the economy segment—an increasingly attractive sector due to its rapid development opportunities and resilience to the economic cycles. Prizeotel … has differentiated itself through innovative urban design, tech-savvy focus, personal touch and unique team culture—a total fit to Rezidor.”
Founded by CEO Marco Nussbaum, and co-created by New York-based industrial designer Karim Rashid, prizeotel currently operates three hotels with a total of 555 rooms in Hamburg, Hannover, and Bremen. Exclusively designed by Rashid, each hotel features a futuristic look and a focus on technology.
After the acquisition, prizeotel will continue to be led by Nussbaum and his team, and Neumann will serve on the governance board. An integrated development and commercial support team will be put in place to accelerate growth.
Plans are in place to pursue prizeotel properties in key cities in Austria, Switzerland, and Benelux. An extension of the property in Hamburg and a second hotel in Hamburg-Reeperbahn are already under construction.
