In a move designed to bolster their respective growth strategies, Lindner Hotel Group (LHG) and the 12.18. Group have announced a strategic partnership.

LHG will assume operational control of five hotels previously managed by 12.18., expanding its brand portfolio and geographical reach.

Focus on hotel operations and real estate expertise

The agreement signifies a shift in focus for both companies.

LHG will leverage the acquired hotels to expand its brand portfolio and solidify its position as a hotel operator and lessee. 

12.18. will transition its focus to real estate activities, concentrating on acquiring, developing and managing hotel properties for its investment partners.

Arno Schwalie, CEO of Lindner Hotel Group, said in a statement: “This collaboration strengthens LHG’s presence in the European market. By incorporating these new hotels, we gain a foothold in three new countries and establish a multi-brand strategy that caters to a wider range of guests.”

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“The integration marks the next chapter in our strategic direction. We are growing with a clearly differentiated multi-brand strategy and are strengthening our position in the European leisure market.”

Financial growth and brand expansion

The acquisition is expected to generate significant revenue growth for LHG, with an anticipated increase of €90m ($97.6m) and more than 1,000 additional rooms added to its portfolio.

This expansion will bring its total operations to 35 hotels across eight European countries and the USA, with six further hotels planned.

LHG expects to employ 2,500 people and generate revenue of €330m in 2024.

A multi-branded future

Following the acquisition, LHG will now operate four distinct hotel brands:

Lindner Hotels & Resorts: This brand encompasses business hotels, theme hotels, luxurious spas and city escapes.

me and all hotels: These urban boutique locations cater to city and business travellers.

7Pines Hotels & Resorts: Specialising in laidback luxury and personalised guest experiences, this brand offers locations in the Mediterranean.

L-Collection: This newly created brand encompasses properties such as SCHLOSS Roxburghe in Scotland, offering experiences tailored to diverse guest preferences.

This strategic partnership positions both LHG and 12.18. for continued success. LHG gains a significant operational boost and broader brand presence, while 12.18. can focus on its core real estate expertise.