04 October 2022
E+H has advised Leonardo Hotels Central Europe, a hotel group with 98 properties in Central Europe and headquartered in Berlin, on the acquisition of a portfolio of hotel properties from the Austrian Star Inn Group, which became insolvent in May this year and is the largest hotel insolvency in Austria so far in 2022. With a total of 10 properties and over 1,400 guest rooms in Austria, the acquisition makes Leonardo Hotels one of the largest hotel operators in the country.
In addition to the eight Star Inn hotels in Vienna, Salzburg, and Linz, a Vienna hotel that will open soon will also be acquired in a parallel transaction. The hotels will all undergo extensive renovations to match the design of Leonardo Hotels and to qualify for a higher hotel category. The Star Inn staff will be taken over completely, so that existing jobs will be retained and hotel operations will not be affected.
“The acquisition and restructuring of the Star Inn Group in Austria was extremely complex, not least because of the current difficulties in the hotel industry. The diverse interests of the creditors, the hotel owners, the employees, and the owner of the Star Inn Group had to be reconciled”, explains Alric A. Ofenheimer, senior partner at E+H and head of the Real Estate practice group, who led the E+H team. “Despite the challenging environment, E+H’s practice groups worked seamlessly together, in particular the restructuring team and the real estate team, to successfully bring the largest hotel insolvency in Austria to a close for our clients in 2022,” added Marcus Benes, head of the Restructuring practice group.
The insolvency of the Star Inn Group in Austria, which became known in May 2022, was preceded by the bankruptcy of the hotel chain in Germany in 2021. The insolvency was justified by the Corona pandemic. The reorganization will help the new investor Leonardo Hotels to expand its portfolio and secure a stronger share in the steadily growing hotel market in Austria.
Dr. Alric A. Ofenheimer (Lead Partner, Real Estate/Corporate + M&A), Dr. Marcus Benes (Partner, Banking + Finance), Dr. Dieter Thalhammer (Partner, Antitrust), Dr. Jana Eichmeyer (Partner, Employment Law), Dr. Karolin Andréewitch-Wallner (Partner, Employment Law), Ulrike Sehrschön (Partner, Public Law), William Redl (Attorney, Antitrust), Karoline Hofmann (Attorney, Banking + Finance/Restructuring), Helena Neuner, Johannes Helm (both Associates, Real Estate/Corporate + M&A), Titus Kahr (Associate, Public Law)
About Leonardo Hotels
Leonardo Hotels Central Europe, headquartered in Berlin, is responsible for a hotel portfolio in the markets of Germany, Austria, Switzerland, Poland, Czech Republic, Hungary, Romania, Spain, and Italy. With 43 destinations in 9 countries, the hotel portfolio includes 98 properties with 16,000+ rooms. The brand family consists of: Leonardo Hotels, Leonardo Royal Hotels, Leonardo Boutique Hotels, and NYX Hotels by Leonardo Hotels. Located in central destinations, they are known for high quality and service standards, as well as stylish interior design with regional flair.