Leonardo Hotels announced today that it has signed a purchase agreement to acquire the Zien Group and its 12 hotels in the Netherlands. This acquisition marks a turning point for Leonardo Hotels, which will see its portfolio in the Benelux region grow to 28 hotels.
The transaction was entered into with affiliates of KSL Capital Partners, LLC, a leading investor in the travel and leisure sector, and Garden Capital Group, whose shareholders are the founders of Zien. Financial terms of the agreement were not disclosed and the transaction is expected to close in the third quarter of 2024, subject to customary closing conditions.
With this acquisition, Leonardo Hotels will add 1,522 rooms to its portfolio, bringing the total to 4,161 rooms in the Netherlands and Belgium. This significant expansion includes five hotels in Amsterdam and several others in key cities such as Rotterdam, The Hague, Eindhoven, Groningen and Maastricht, reflecting the ambitious growth strategy of Leonardo Hotels Benelux. The acquired hotels include renowned Amsterdam properties such as The Eden Hotel, The Lancaster Hotel and The Manor. Completion of this transaction is expected in the first half of the third quarter of 2024, subject to merger clearance and the works council notification process.
The Zien Group, whose current portfolio was built up by the Dijkstra family over a period of 75 years, was majority-acquired by KSL in December 2021, at the height of the Covid-19 pandemic. Under the leadership of Billy Skelli-Cohen, the group carried out targeted renovations and operational initiatives that improved its performance beyond pre-pandemic levels.
“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
