Zleep Hotels, the Denmark-based hotel company, is merging with third-party hotel management company Core Hospitality. The merger will create Denmark’s fourth largest hotel operating company, Core Hospitality said in a statement.
The merger follows the Zleep Hotels’ split from H World International, formerly known as Deutsche Hospitality. The German hotel company now owns 100% of the Zleep brand, while Core Hospitality owns 100% of the operations in Denmark. H World will operate the eight Zleep Hotels in Berlin, Hamburg, Frankfurt, Lausanne, Leipzig, Prague, Zurich and Madrid.
Combined, the new management group will continue to operate as Core Hospitality and pursue a multi-brand strategy as a white-label hotel operator. Following the merger, Core Hospitality’s portfolio includes 19 hotels (totaling 2,288 rooms) under five brands — 14 Zleep Hotels in Denmark, two Moxy Hotels in Norway, a Fairfield by Marriott and a Residence Inn by Marriott in Copenhagen and a Kirk Suites in Vejle.
“It was also my dream to be a white-label hotel operator. Now we truly are with five brands – and more to come,” said Peter Haaber, CEO of Core Hospitality.
Core Hospitality also has two hotels totaling 340 rooms — Moxy Aarhus and Zleep Glostrup — in its pipeline.
The new Core Hospitality operating platform will leverage new levels of scale, which will enable it to negotiate stronger rates with partners, strengthen its commercial efforts across more hotels, to create a bigger talent pool and to offer investors the opportunity to maximize return on investment and lower the stabilization period through the power of brand choice.
Zleep Hotels, the economy brand with Danish roots and Scandinavian design, has been expanding its portfolio. Earlier this year, the brand debuted in Switzerland with the launch of a 120-room hotel in Lucerne, Switzerland. The opening marked Zleep Hotels’ expansion into its fourth country, following hotels in Denmark, Spain and the Czech Republic.
