The Hyatt group pays money to Lindner Hotels AG, which is to be used for the renovation of the 25 German and ten other European hotels.
(Photo: press photo)
Munich Even before Corona, the Düsseldorf hotel chain Lindner with its 35 hotels was in the red before taxes, and further losses were added during the pandemic. Total sales, which had fallen by more than half in 2020 to a gross of 80 million euros, also remained extremely meager in the following financial year.
In 2021, the family business, founded in 1973, managed just 90 million euros. The company now wants to free itself from its tense earnings situation. “We have just entered into a strategic partnership with the Hyatt hotel group,” announced CEO Arno Schwalie on Wednesday at the Expo Real property fair in Munich.
It gives the people of Düsseldorf access to an international clientele and support when it comes to technology. A few weeks ago, Schwalie replaced the family’s managing director Otto Lindner in the management board. The 60-year-old founder’s son withdrew to the supervisory board.
According to Mark Hoplamazian, who heads the listed Hyatt group, the Americans are paying Lindner Hotels AG money via an unspecified financial vehicle, which is to be used for the renovation of the 25 German and ten other European hotels.
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This should make them fit to be marketed under the Hyatt franchise brand “Joie de Vivre by Hyatt”. However, the “Lindner” brand name will remain on the houses themselves. In addition, Hyatt does not participate in the company’s equity, but receives a franchise fee from the Düsseldorf-based company, which is based on total sales.
Lindner becomes part of the bonus program
“Hyatt wants to expand significantly in Germany and Europe,” said Hoplamazian as the reason for the collaboration. The partnership with Lindner has now increased the offer in Europe to 121 open houses. So far, the US group only had nine locations between Munich, Hamburg and Berlin. However, the focus is still on “three to four German houses”.
Arno Schwalie is CEO Germany of Lindner Hotels.
(Photo: press photo)
With the new agreement, which has been agreed for at least 15 years, Lindner does not only benefit from the financial support of the Americans. The hotel chain, which is also represented in Belgium, Spain, the Czech Republic, Slovakia as well as in Switzerland and Austria, will also become part of the “World of Hyatt” bonus program. A total of 26 hotel brands of the group are involved in it, including the lifestyle chain Andaz, which is represented in Germany.
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According to the CEO, 30 million guests of the US group worldwide have a membership that lures overnight stays with bonus points and discounts. Similar to the competitors Accor (“Accor Life Limitless – ALL”) or Hilton (“Hilton Honors”), it is intended to prevent people looking for accommodation from booking their rooms via platforms such as Booking.com, HRS or Expedia. They usually allow themselves a fee of 18 to 25 percent of the room price for their switching services.
The fact that Hyatt can now offer its loyalty guests 35 more overnight accommodations in one fell swoop strengthens the position of the Americans compared to Booking & Co. On the other hand, Lindner promises to receive additional bookings via “World of Hyatt”, for example from South America or the Far East, where the chain is not yet known. “I see it as a marriage,” enthused Hoplamazian in Munich about the agreed collaboration.
More: Why investors are pouring record sums into the struggling hotel industry