Leonardo Hotels Enters Into An Agreement To Acquire The Zien Group

Leonardo Hotels ("Leonardo") today announced that it has entered into a purchase agreement to acquire the Zien Group ("Zien") and its 12 hotels in the Netherlands from affiliates of KSL Capital Partners, LLC ("KSL"), a leading investor in travel and leisure businesses, as well as its partner, Garden Capital Group, whose shareholders founded the business. Terms were not disclosed. The transaction is scheduled to close in the second quarter of 2024 and is subject to customary closing conditions.

The sale marks a successful investment for KSL, alongside Garden Capital Group, and transforms Leonardo Hotels into one of the leading hotel chains in the region – as its portfolio in the Benelux increases to 28 hotels. The acquired platform consists of five hotels in Amsterdam and several hotels in top locations in major cities, such as Rotterdam, The Hague, Eindhoven, Groningen, and Maastricht, underlining the significant growth strategy of Leonardo Hotels Benelux.

Zien Group's current portfolio of hotels was assembled by the Dijkstra family over 75 years. KSL acquired a majority interest in the business in December 2021, during the height of the Covid-19 pandemic. Through targeted refurbishments and operational initiatives under CEO Billy Skelli-Cohen, the group's performance has steadily improved and now well surpasses pre-Covid performance.

Through this transaction, Leonardo Hotels adds 1,522 hotel rooms to its portfolio, bringing its total number of rooms in the Netherlands and Belgium to 4,161. The acquisition includes the transfer of well-known hotels in Amsterdam, such as the iconic Eden Hotel, The Lancaster Hotel, and The Manor.

The transaction is envisaged to complete in the first half of Q3 2024 and is conditional on the completion of merger clearance requirements and the works council advice process.

We are delighted to have been awarded this important mandate from KSL, which reflects very well on our ability to support deals of this nature - particularly in a highly competitive process. These new hotels will benefit from the synergies of being part of a much larger hospitality group, providing our guests with access to a robust portfolio of hotels in an increasingly attractive hospitality sector. Additionally, our investors can look forward to having strong returns from their investments as we continue to grow. By targeting properties that align with Leonardo's standards of excellence, the partnership seeks to curate a collection of industry-leading hotels. Guy Vardi and Yaniv Amzaleg, M&A Directors of Fattal and MD of Fattal European Partnerships

Zien's hotels align seamlessly with Leonardo Hotels' vision of welcoming guests to unique, often city-center locations. We recognize many similarities in the passionate management of these hotels and look forward to enhancing our brand alongside our new colleagues. Alexander Kluit, Managing Director of Leonardo Hotels Benelux

We are delighted with this portfolio deal in the Netherlands, which increases our number of hotels in the Benelux region to 28. Our group has seen remarkable growth in recent years, now comprising over 300 hotels across 21 countries, with further acquisitions to be announced in the coming weeks. Ronen Nissenbaum , CEO of Leonardo Hotels in UK, Ireland, Benelux, Spain, and Portugal

We are excited to hand the reins of Zien Group to Fattal Group and Leonardo Hotels as a strategic long-term owner. We have long recognized the strength of the Netherlands hospitality market. Martin Edsinger, Partner at KSL

It has been our honour to be part of the storied history of Zien Group and its iconic properties. We are confident that Leonardo Hotels will enable a new chapter of continued growth for the portfolio as part of a larger group. Raphael Bihler, Senior Vice President at KSL

About Leonardo Hotels

Founded in 2006 as the European arm of the Fattal Hotel Group, Leonardo Hotels has since grown into a leading name in the hospitality industry. With a diverse portfolio consisting of Leonardo Hotels, Leonardo Royal Hotels, Leonardo Boutique Hotels, Leonardo Limited Edition Hotels and NYX Hotels, we offer a range of unique experiences tailor-made for the modern traveler. The Group owns and manages over 300 hotels across 21 countries.