Hotel franchising company Wyndham Hotels & Resorts has acquired Berlin-based hotel operator HR Group’s brand Vienna House for approximately $44m.

The brand will now be called Vienna House by Wyndham.

Following this transaction, Wyndham has now added an upscale and midscale brand of nearly 40 hotels and over 6,000 rooms to its existing portfolio.

With 28 hotels in Germany alone, the combined portfolio will have over 400 hotels across 30 countries, including existing Wyndham properties in Europe.

Wyndham Hotels & Resorts CEO and president Geoff Ballotti said: “Europe continues to present accelerating growth for travel sector with strong demand steadily bouncing back across leisure and business.

“Vienna House’s guest-centric culture, strong brand recognition and ambitious brand development plans align with our distribution goals, making it a perfect match to continue our international growth and reinforces our position and commitment to region.”

The deal will allow HR Group to focus on its competencies as an owner/operator of strategic real estate in Europe.  

HR Group, which is also Wyndham’s long-standing franchised partner, will continue to own/lease and operate the newly acquired brand’s hotels.

The acquisition will not affect the existing long-term franchise agreements between Wyndham and HR Group.

Vienna House portfolio includes Vienna House and Vienna House Easy properties across various destinations, such as Bucharest, Munich, Berlin, Krakow, and Prague, among others.

HR Group CEO and sole shareholder Ruslan Husry said: “The Vienna House has built a fantastic reputation in many European destinations, and our expanded and close-knit collaboration with Wyndham will provide strength, scale and expertise needed to grow brand faster and ensure more guests experience what Vienna has to offer, while also tapping into renowned benefits of Wyndham Rewards.”