Vienna House Buys 17 City Hotels From arcona

Vienna/Rostock, 06 May 2019 – arcona focuses on holiday hotel business, Vienna House expands portfolio of city hotels.

The Austrian hotel group Vienna House buys 17 city hotels and two projects from Rostock-based arcona Group effective 30 April 2019. In the future, arcona plans to focus on the holiday hotel business. In addition to eight successful arcona Living and four arcona Hotels, the purchase also concerns the five Steigenberger operations of franchisor Deutsche Hospitality as well as two projects in Greifswald and Mannheim. The parties have agreed not to disclose any details as to the purchase price. “The arcona city hotels fit perfectly into the portfolio of Vienna House. Here two partners have found each other who are focusing on their brand positioning, who want to grow meaningfully from it and who also get along splendidly,” says Rupert Simoner, CEO of Vienna House. All employees of the affected arcona city hotels will be taken over by Vienna House. The hotels will be managed as lease operations under the umbrella brand Vienna House. The largest Austrian hotel group currently operates and is developing over 40 hotels in Europe with a focus on city hotels under the brands Vienna House, Vienna House Easy and Vienna House R.evo.

In contrast, arcona Managing Director Alexander Winter sees his hotel market of the future in the holiday hotel sector. Remaining in the arcona portfolio are six hotels in successful destinations such as Sylt, Kitzbühel and Rügen as well as the Hotel Elephant in Weimar and the Romantik Hotel at Wartburg Castle in Eisenach. An important growth driver in the future will be the Barefoot Hotels, as arcona recently signed a long-term agreement with Barefoot founder Til Schweiger for the worldwide implementation of the concept as a licensee. “With the remaining houses and the Barefoot concept, we will now be concentrating fully on the growing holiday hotel market and successfully embarking on the future together with our employees,” say arcona shareholders Alexander Winter and Stephan Gerhard. A total of 20 Barefoot hotels are to be opened over the next ten years. “We see tremendous potential here, both nationally and internationally,” Winter confirms. The arcona headquarters will remain in Rostock, where the group will move into its new corporate headquarters, Villa Zeeck, in the second half of 2019.

For the successful sales process, arcona would like to thank ECOVIS and Wenske Legal while Vienna House thanks the representatives of Hogan Lovells International LLP and PricewaterhouseCoopers Vienna. The transaction was accompanied by Treugast Solution Group.

The following operations are being added to the Vienna House portfolio:

● Arcona Hotels in Potsdam, Stuttgart, Rostock and Stralsund

● Arcona Living in Osnabrück, Wetzlar, Leipzig, Baden-Baden, Berlin, Bremen, Munich and Schaffhausen (CH)

● Steigenberger Hotels in Rostock, Wismar, Osnabrück, Braunschweig and Eisenach

● Projects in Greifswald and Mannheim

About Absolute Hotel Services (AHS)

AHS is the fastest growing hospitality management/branding company in Asia, with an ever-expanding geographic portfolio of hotels, resorts and serviced residences. AHS also has interests in the golf industry through Absolute Golf Services, is the exclusive operator of the Travelodge brand in Thailand through Travelodge Thailand and Vienna House brand in Asia through Vienna House Asia (www.absolutehotelservices.com)

With headquarters located in Bangkok, Thailand and with regional offices in Vietnam, Indonesia, Hong Kong, India and now Europe, and with more expansions planned, AHS and its brands have resonated with investors and consumers and contributed great value to all stakeholders.

Covering both the luxury and economy segments and everything between through its brands U Hotels & Resorts, Eastin Grand Hotels & Resorts, Eastin Hotels Resorts & Residences, Eastin Easy, Travelodge and Vienna House, AHS have developed and continue to evolve relevant hospitality solutions which truly work.

AHS is an affiliate company of U City Public Company Limited; one of Thailand's largest public listed companies with a full-scale real estate development.

About U Hotels & Resorts Brand

www.uhotelsresorts.com

The brand was created with today’s travellers and their expectations in mind in the fast moving world of hospitality. Founded in 2008, U Hotels & Resorts is an uncomplicated, deluxe bijoux hotel brand that features a stimulating blend of local heritage and design accents paired with modern amenities, services and facilities to discreetly and tastefully appeal to sophisticated target customers who are eager to enjoy the local environment.

U Hotels & Resorts’ unique service concept includes 24-hour room use, whenever/wherever breakfast option, free Wi-Fi, U choose programme and U Make a Difference programme.

About Eastin Grand Hotels & Resorts | Eastin Hotels & Resorts | Eastin Residences | Eastin Easy Brands

Eastin Grand Hotels & Resorts and Eastin Hotels, Resorts & Residences - a 4 and 5 star luxury brand created to be based on market relevance as well as the needs and desires of target customers. The brands provide value and consistency through flexible venues and services with added value to serve the desires of business and leisure travellers alike.

Eastin Brand’s target customers are value hunters looking for luxury, comfort and convenience at the right price with maximum flexibility to serve the purpose of their visit, whether it is business or pleasure.

Unique services include free wi-fi, extended breakfast hours to 11:30 hrs, and room ready guarantee.

Eastin Easy, a 3 star hotel brand that provides comfortable accommodation, with breakfast plus approachable services and simple facilities for business and leisure travellers. The brand offers 6/12/24 hour Easy rates.

About the Travelodge Thailand

www.travelodgehotels.asia

With over 1000 economy sector properties operating in North America, Europe, Australia and New Zealand, Travelodge Thailand is developing and expanding the Travelodge brand in Thailand.

The Travelodge brand in Asia is guest centred and provides the essentials for a home away from home. Being a limited service brand, Travelodge hotels in Asia focus on delivering an optimal experience through thoughtful design to maximize room space and ensure essential conveniences are available to the guest.

About Absolute Golf Services (AGS)

www.absolutegolfservices.com

A golf management and consultancy company with headquarters based in Thailand. Providing a full range of golf services including, but not limited to, golf club design, development, renovations, management and consulting.

About Vienna House

www.viennahouse.com

Vienna House is all about making new experiences, exploring as well as recognising the true beauty that is to be found in the simple things in life. Vienna House hotels have their own distinct character but also shared values and one aim: to inspire guests. Austria's largest hotel group owns and manages individual city and resort hotels with a shared character. The hotels of the "Vienna House" brand operate in the upscale design segment and include individual city and resort hotels that stand for timeless design and a natural air of class. "Vienna House Easy" are the group’s smart-casual design hotels with a cool, fresh and easy-going style. The company currently employs 2,200 staff members in nine countries. Vienna House is a registered trademark of Vienna International Hotel management AG.