As the Majority Shareholder of Steigenberger, Travco Group Robustly Expands its Global Platform

Cairo, Egypt (PressExposure) October 25, 2009 -- During the press conference that took place in Frankfurt on September 24th, 2009, Mr. Hamed El Chiaty, Chairman and CEO of Travco Group and Major shareholder of Steigenberger AG, alongside the Management Board of Steigenberger Hotels AG identified a number of destinations with significant growth potential that the new corporate expansion strategy will be diligently focusing on to introduce the Steigenberger hotel brands to.

The take over reflects Travco's plan to diversify the group's hospitality portfolio and improve its range. More Steigenberger Hotels and Resorts and midrange hotels of the InterCity Hotel brand are planned in European cities and in the Arab region. They will perfectly complement the existing hotel portfolio of the Travco Group, which comprises the brands Jaz, Iberotel and Sol Y Mar.

With this acquisition, Travco Group has entered the business hotel market, particularly in Germany, Austria and Switzerland. "The takeover of the Steigenberger Hotel Group represents an important strategic milestone on the expansion course that Travco Group has been following for so many years. It is a way of reinforcing our international presence in the hotel and a stepping stone into the city hotel segment", said Hamed El Chiaty of his reasons for acquiring Steigenberger Hotels AG.

Travco is committed to focusing on lucrative markets that will assist the growth of the company and reinforce its desire to introduce Steigenberger and InterCity Hotel to these markets, as contracts for eleven hotels with around 2,400 rooms have already been signed and further hotels are at various stages of planning.

As for the strategic expansion planned for the Steigenberger Hotel Group, the management announced that in 2010 and 2011 InterCity Hotel will open in five new locations in Germany; at the Berlin- Brandenburg Airport and in Bonn, Darmstadt, Mannheim and Ingolstadt. 2011 will also see the opening of two grand hotels of the Steigenberger Hotels and Resorts brand; in Leipzig and on the island of Usedom. "It is foreseen that this expansion plan will significant increase the brand awareness for Steigenberger Hotels & Resorts and InterCity Hotel." Said Steigenberger's Chief Executive Officer, Andre Witschi.

A further positive effect of the takeover is the emergence of operative synergies. Opportunities for these will arise in the areas of Sales, Marketing and ECommerce, Purchasing, IT and Business Development. As the new majority shareholder, Travco Group will enable the Steigenberger Hotel Group to build on its robust position and achieve stronger international positioning. The focus will remain on the key objectives of its corporate strategy: quality leadership, increased profitability and expansion.

About Travco Group Int.

The 13 year award winner Travco Group has permeated every facet of Egypt’s tourism industry, with a unique fully integrated business model. Travco Group International Holding umbrella includes the following brands; Travco Travel the flagship destination management company (DMC) of the group handles more than 1.3 million tourists annually; Their renowned hospitality brands are the luxury hotel brand Jaz, Iberotel Sol Y Mar Hotels & Resorts and Travcotels Nile cruises. This is in addition to the leading German hotel chains recently acquired, Steigenberger Hotels & Resorts and InterCityHotel. Travco Properties is Travco’s real estate development arm and features two mega developments namely Almaza Bay on Egypt’s North Coast and Madinat Makadi on the Red Sea. Travco Transport and Prestige Cars oversee the transportation fleet of the Group.

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Press Release Submitted On: October 25, 2009 at 7:37 am
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