Whitbread PLC is set to acquire a German portfolio of 19 hotels from Foremost Hospitality Group GmbH for an undisclosed price.
Among the properties being purchased, 13 are leasehold hotels, encompassing 2,140 rooms. The remaining six hotels are committed pipeline establishments and include about 970 rooms, most of which are slated to open over the upcoming two years.
The transaction and consideration are pending the termination of the franchise agreements with the current franchiser, as well as the landlords' approval to rebrand the hotels under Whitbread's U.K.-headquartered hotel chain, Premier Inn. The deal terms are expected to be met for the 13 trading hotels within two years. Until the rebranding process is completed, the hotels will continue to trade under their current brand, according to a release.
Following the purchase, Whitbread's Premier Inn brand will have a total committed network pipeline in Germany of 31 hotels spread across 15 cities, offering more than 5,700 rooms. The hotels are all slated to become operational by the end of 2020.
