Kempinski Hotels announces expansion plans
More than 100 operating luxury hotels to welcome guests by 2021
The Kempinski Group is focusing on international expansion as part of its strategic planning. Europe's oldest luxury hotel chain expects to have more than 100 luxury hotels in operation around the globe by 2021. In the next 12 months alone, nine new hotels with a total of 1,961 rooms and suites will open their doors: three of them in the Caribbean and one hotel in Tel Aviv, Tbilisi, Bangkok, Guangzhou, Brazzaville and Almaty respectively.
Thus, 7Pines Ibiza will reopen in spring 2020 under the name 7Pines Kempinski Ibiza, followed by another resort in Sardinia. 12.18. plans to raise 500 million euros as capital by institutional investors. Kempinski will contribute its know-how and many years of expertise in the luxury hotel industry, together with its corresponding sales and distribution channels, to the partnership.
The strategic orientation of the Kempinski Group's expansion in the future will not only be based on management contracts, but the acquisition of hotel properties is also planned. In particular, properties that may be extensively renovated and then repositioned under the group's own brands will be favoured. To date, Kempinski is purely a hotel operator - only the famous deluxe hotel on Maximillianstrasse in Munich, the Hotel Vier Jahreszeiten Kempinski, is owned by the company.
"By acquiring real estate, we benefit from the increase in value instead of paying money for management contracts," says Martin R. Smura, Chief Executive Officer and Chairman of the Management Board. "We have set ourselves ambitious goals to expand the portfolio of Kempinski Hotels with additional flagship hotels. This selective growth is focused on acquiring highly regarded hotels that will make a valuable contribution to our brand. We therefore select only those hotels that meet our brand values and thus the highest quality standards of our guests."