Steigenberger finds strength under Deutsche umbrella

Puneet Chhatwal wanted to give the long-standing tradition of the Steigenberger brand new stimulus. So with the blessing of the Steigenberger Hotel Group board and after a year-long process, Deutsche Hospitality, which he says stands for German precision and global vision, was launched in October as the umbrella brand of Steigenberger Hotels and Resorts.

“It takes a linguistically neutral stance among the three brands that it unites, and it can be extended to embrace possible additional brands,” said Chhatwal, the CEO who leads the team responsible for some 116 hotels in 12 countries. “Therefore, the new umbrella brand ends the confusion between the prior umbrella brand Steigenberger Hotel Group and the hotel brand Steigenberger Hotels and Resorts.”

The change supports the strategy to export hospitality “made in Germany” beyond national frontiers. Deutsche Hospitality is targeting 150 hotels (in operation or planning stage) by 2020, comprising 75 Steigenberger Hotels and Resorts, 65 IntercityHotels and 10 Jaz in the City hotels. “We are striving for growth in our core market, Germany and central Europe, as well as for expansion in the Middle and Far East,” Chhatwal continued.

The good news, he added, is that all three brands have the potential for growth, witnessed by IntercityHotel expanding to the first cities outside of Europe, namely to Dubai; Salalah, Oman; and Qingdao, China. Additionally, growth in Germany is strong, with the next openings in Brunswick and Duisburg.

Displaying the new Deutsche Hospitality logo at a recent travel trade show

Chhatwal also boasted that the group regularly signs new Steigenberger Hotels and Resorts contracts (Istanbul Airport Hotel and Cologne just opened, Munich and Baden-Baden are getting ready for opening) and that Jaz in the City is off to a good start with a hotel in Amsterdam and a second to come in Stuttgart in six months’ time.

“The biggest challenge is preserving the core values and stimulating growth and internationalization at the same time,” Chhatwal said. “Not only do we need all stakeholders to embrace this change, but like any other organization, we need globally stable markets for driving this change.”

Chhatwal is confident Deutsche Hospitality will have easier access to future deals, especially in the context of international growth, and he does not discount the potential to add brands. “There is space for potential additional brands. If there is a good opportunity, like we had with Jaz in the City, we shall surely consider it,” he said.