Meininger Holding GmbH, a subsidiary of Mumbai-based tour and travel firm Cox & Kings Ltd, has agreed to enter into a strategic investment partnership with real estate firm Fonciere des Regions to expand its footprints in Europe, according to a statement.
Fonciere des Regions, through its subsidiary Fonciere des Murs, and Meininger Holding have formed a commercial partnership in respect of the sourcing by Meininger and acquisition by Foncière des Régions of hotel properties in European gateway cities.
As per the partnership, hotels will be leased to Meininger who will manage them under its mother brand.
Over the next four years, this strategic agreement could translate into up to €400 million ($493 million) in total hotel investments, subject to approval by both the parties on a hotel-by-hotel basis, through trip net long-term leases.
“Meininger is unique hybrid hotel product. The partnership with Fonciere des Regions is an important step for our expansion in Europe. Meininger's aim is to operate an “urban traveller's home” in every major European city. The collaboration with Fonciere des Regions is an exciting step in this direction,” Navneet Bali, CEO of Meininger Hotels, said in the statement.
Initially, the target cities include Amsterdam, Barcelona, Brussels, Berlin, Geneva, Hamburg, Frankfurt, London, Madrid, Milan, Munich, Paris, Rome, Vienna and Zurich. In addition, the brand development is planned in other towns in Europe.
Meininger seeks to fill the gap between a hostel and a hotel by offering accommodation in top cities at a price cheaper than hotels but offering more amenities compared to a hostel. It has 16 properties in 10 cities operating 7,089 beds and 2,093 rooms.
It is a part of Holidaybreak, which in turn is part of CVCI-backed firm Prometheon. Prometheon is part of Cox & Kings.
Cox & Kings provides travel management solutions. Its services include destination management, outbound tourism, business travel and conference solutions. It also offers domestic holidays, trade fairs, foreign exchange and insurance.
Earlier in June, it clinched a deal to sell the camping division of UK-based education and activity travel arm Holidaybreak Ltd to French firm Homair Vacances for £89.20 million (Rs 882.8 crore or $149 million).
Cox & Kings had acquired this unit in 2011 as part of acquisition of Holidaybreak through its UK unit Prometheon Holdings (UK) Ltd.
Fonciere des Regions is a real estate firm which has assets in office spaces besides residential market in Germany and hotels across Europe.
(Edited by Joby Puthuparampil Johnson)