SMG Holding, an investor focused on medium-sized, European companies, has announced the IPO of Sircle Hospitality Group, a European lifestyle hospitality group. The value of the company is estimated at around €250 million after the IPO, with the total value of its property portfolio exceeding €400 million. Sircle Hospitality Group plans to use the capital for portfolio expansion and new investments. Sircle Hospitality Group's IPO on the 'regulated market' of the Frankfurt Stock Exchange is scheduled for the second quarter of 2024.
Sircle Hospitality Group and already listed SMG European Recovery, a subsidiary of SMG Holding, have entered into a merger agreement. With the completion of the merger in the second quarter of 2024, the company's name will be changed to Sircle SE, and new shares will be issued. SMG founder Dr Stefan Petrikovics will be appointed vice-chairman of the supervisory board.
Dr Stefan Petrikovics, CEO of SMG Holding, said: "Sircle Hospitality Group is well positioned in the fast-growing European tourism and lifestyle hospitality sector. By expanding its hotel portfolio and focusing on high-quality lifestyle concepts, Sircle Hospitality Group is following a clear strategy that impressed SMG Holding. With our structure prepared for an IPO, we are the ideal partner to continue growing together. We provide capital and offer safe frameworks for accessing the capital market."
Sircle Hospitality Group aims to become leading independent hospitality group
"The merger of Sircle Hospitality Group with SMG European Recovery is an important milestone as it will make us the boutique hospitality group of Europe. There are plans to open 100 hotels, expand our Food & Beverage offerings - including the Seven North Restaurant and Miznon in collaboration with celebrity chef Eyal Shani - and our private members' club The Cover. In this way, we are raising the standard and shaping the future of lifestyle hospitality," said Liran Wizman, founder and owner of Sircle Hospitality Group.
Liran Wizman is an award-winning Amsterdam-based real estate and hospitality entrepreneur. He began his career in hotel real estate in 2003 by founding the GCH Hotel Group. He is also the co-founder and co-owner of Sircle Collection and of The Entourage Group.
Sircle Hospitality Group plans to use the proceeds of the merger strategically to expand its presence in major Western European cities and the Mediterranean region. Sircle Hospitality Group's portfolio consists of 37 luxury hotels in 23 different European cities, and another 35 bars and restaurants.
Currently, about 75% of the portfolio is in Germany, the Netherlands and Austria. But the strategy for the future includes expanding new and existing brands such as Sir Hotels and Max Brown Hotels and adding more rooms - currently 4,000 (including hotels currently under renovation). By 2023, sales were up 25% to €200 million. Sircle Hospitality Group is committed to excellence and promises its guests unforgettable experiences.
Together with selected investors, SMG Holding is providing the capital and vehicle for the upcoming IPO. SMG will remain a shareholder in the company after the issue and aims for a long-term partnership.
Sircle Hospitality Group's IPO is already the second issue in 2024 initiated by SMG Holding. The earlier issue of BigRep, the German pioneer of large industrial 3D printers, had already been announced for the first quarter of this year. The IPO of an energy company is next. That is expected in the second half of 2024.