Leonardo Hotels acquires Zien Group and Garden Capital Group

Leonardo Hotels announced today it has entered into a purchase agreement to acquire Zien Group and its associated 12 hotels in the Netherlands from subsidiaries KSL Capital Partners, LLC - a leading investor in travel and leisure companies - as well as its partner, Garden Capital Group, whose shareholders founded the company. Specific terms were not disclosed. The transaction is expected to close in the third quarter of 2024 and is subject to customary conditions.

The sale marks a successful investment for KSL, together with Garden Capital Group, and transforms Leonardo Hotels into one of the leading hotel chains in the region - increasing its portfolio in the Benelux to 28 hotels. A total of five hotels in Amsterdam are acquired as well as several hotels in prime locations in major cities such as Rotterdam, The Hague, Eindhoven, Groningen and Maastricht. This highlights Leonardo Hotels Benelux's significant growth strategy.
The current portfolio of hotels within the Zien Group was built over 75 years by the Dijkstra family. KSL acquired a majority stake in the company in December 2021, during the height of the Covid-19 pandemic. Through targeted renovations and operational initiatives led by CEO Billy Skelli-Cohen, the group's performance has steadily improved and is now well above pre-Covid levels.

The transaction adds 1,522 hotel rooms to Leonardo Hotels' portfolio, bringing the total number of rooms in the Netherlands and Belgium to 4,161. The acquisition includes the transfer of well-known hotels in Amsterdam, such as the iconic Eden Hotel, The Lancaster Hotel and The Manor. The transaction is expected to close in the first half of Q3 2024 and is subject to the completion of merger clearance requirements and the works council advisory process.

Guy Vardi and Yaniv Amzaleg, M&A Directors of Fattal and MD of Fattal European Partnerships, commented, "We are delighted to have received this important assignment from KSL, as it reflects excellently our ability to support deals of this nature - especially in a highly competitive process. These new hotels benefit from the advantages of a large hospitality group, giving our guests access to a broad portfolio of attractive hotels. In addition, our investors can look forward to strong returns as we continue to grow. By focusing on hotels that meet Leonardo's standards of excellence, we collectively aim to put together a collection of leading hotels."

Alexander Kluit, Managing Director of Leonardo Hotels Benelux, welcomed the deal: "Zien's hotels fit seamlessly with Leonardo Hotels' vision of welcoming guests to unique, often centrally located locations. We recognise many similarities in the passionate management of these hotels and look forward to strengthening our brand together with our new colleagues."

Ronen Nissenbaum, CEO of Leonardo Hotels in the UK, Ireland, Benelux, Spain and Portugal said: "We are delighted with this acquisition in the Netherlands, bringing our total number of hotels in the Benelux to 28. Our group has experienced remarkable growth in recent years, with currently more than 300 hotels in 21 countries. Further acquisitions will be announced in the coming weeks."

Martin Edsinger, Partner at KSL, noted: "We are excited to hand over the reins of Zien Group to Fattal Group and Leonardo Hotels as long-term strategic owners and have long recognised the strength of the Dutch hospitality market."

Raphael Bihler, senior vice president at KSL, added: "We are honoured to be part of Zien Group's rich history and its iconic accommodations. We are confident that Leonardo Hotels will enable a new chapter of continued growth for the portfolio as part of a larger group."