PHOTO: 25hours Hotel Bikini Berlin. (Photo via Flickr/Forgemind)
AccorHotels is set to acquire a 30 percent stake in Germany's 25hours Hotels, the French hotel group announced Monday. According to Reuters, the price will be $39 million.
The boutique hotel chain, which currently operates seven properties in Hamburg, Frankfurt, Berlin, Zurich and Vienna, will continue to be led by CEO and co-founder Christoph Hoffmann.
The goal of the new partnership will be to expand the boutique brand outside of Germany and grow it globally.
"Through this partnership, AccorHotels is investing further in one of the fastest growing segments in the industry and enriching its offer to achieve scale in this segment," AccorHotels CEO Sebastien Bazin said in a statement accompanying the announcement.
"Loyal partners have supported our growth in the German-speaking market for the past ten years and we now also have the opportunity to conquer the world with a global partner," said Hoffmann in a statement of his own.
READ MORE: AccorHotels Launches Millennial-Inspired Brand JO&JOE
25hours also announced that it will expand its internal development structures and create the "Extra Hour Lab" at its Hamburg office where it will look to evolve "everything that sets the 25hours brand apart and makes it viable for the future."
In addition to its seven operating hotels, 25hours has five other properties slated to open in Zurich, Munich, Cologne, Dusseldorf and Paris over the next two years. What's more, the brand has plans to expand in Melbourne, Miami and Milan.
The acquisition still remains subject to antitrust approvals in Germany and Austria.
The transaction signals AccorHotels' latest effort to target milllennials. Less than two months ago the group announced the launch of JO&JOE, a brand looking to "blend the best of private-rental, hostel and hotel formats" in an effort to appeal to younger guests.