Leonardo Hotels has added four properties to its German portfolio, acquiring trading hotels in key city destinations for conversion to its brand.
The move follows a series of recent acquisitions, as Leonardo has deployed funds to buy in hotels, often those it already operated on a leasehold basis. An investment fund, Partnership III, established with affiliates in early 2024, gathered EUR419 million specifically to invest in hotels to support the business. This figure subsequently increased, with over EUR150 million contributed by Leonardo group business, Fattal Properties. Over the ensuing two years, 30 properties have been acquired, in the Netherlands, France, Spain, Italy, Germany, Ireland and the UK.
A portfolio purchase
The latest acquisitions are four former IntercityHotels in Erfurt, Freiburg, Magdeburg and Nuremberg. Owned previously by DWS Alternatives GmbH, the properties were leased to Steigenberger Hotels, and operated under their Intercity flag for many years. The Steigenberger business has, more recently, been acquired by Chinese group H World, with the hotels continuing to trade as previously.
The hotels were sold free of any management ties, which will allow Leonardo to rebrand them. Initially, the assets will continue to trade on an unbranded basis, while comprehensive renovations are carried out. The refits will vary depending on the property, but will include full bedroom refreshes, plus upgrades to make the properties more energy efficient, reducing running costs. It is expected that all four will relaunch as Leonardo hotels during the second quarter of 2026.
“The acquisition of these four hotels marks a major milestone in our growth strategy,” said Yoram Biton, managing director of Leonardo Hotels Central Europe. “Freiburg und Magdeburg open up new doors to exciting destinations, and the launching of a second presence in Erfurt will deepen our commitment to the location. We are also delighted that the venture in Nuremberg will even be our third operation in the city. All of this consolidates our brand profile and strengthens our market footprint in Germany, where we now run 73 hotels.”
For IntercityHotels, the loss of four properties is compounded by another property in Essen switching away from the brand. The hotel there will be switching to become a Spark by Hilton hotel, with Signo Hospitality taking over the property.
Leonardo builds its brand choices
As it grows, so Leonardo has expanded its choice of hotels. The Leonardo Limited Edition was launched in 2024, as a collection brand featuring more individual luxury properties, and has added distinctive hotels in Hamburg, Zurich, Mannheim and Berlin. Further additions planned include the Badischer Hof in Baden-Baden.
Leonardo has also been expanding the portfolio of its lifestyle brand, NYX. It added a hotel in Berlin in May 2025, and subsequently acquired the Radisson Blu in Erfurt for rebranding, as well as opening in Rome.