SMG Holding, an IPO sponsor and investor focused on the European medium-sized business sector has revealed plans to take European lifestyle hospitality group Sircle Hospitality Group public.
Following the listing on the Frankfurt Stock Exchange which is planned for the second quarter of 2024, Sircle has an expected market capitalization of around €250 million with a total value of the hotel real estate portfolio of over €400 million.
Sircle Hospitality Group plans to use the funds realised for growth investments as well as for the expansion of its hotel portfolio across major Western European cities and the Mediterranean region. Sircle Hospitality’s portfolio – which includes hotels under brands such as Sir Hotels, Max Brown, The Cover private members’ club and The Entourage Group - currently comprises 37 upscale hotels in 23 European cities. 75 per cent of the group’s portfolio is concentrated in Germany, the Netherlands and Austria.
A business merger agreement has been signed between Sircle Hospitality Group and the already listed SMG European Recovery, a subsidiary of SMG Holding. With the closing of the transaction, the new listed company will be renamed Sircle SE, and SMG founder Stefan Petrikovics will become deputy chairman of the company’s board.
Why it matters
The planned IPO of Sircle Hospitality Group is a significant indicator of growth potential and investor confidence in the hospitality sector, with the higher - and trending stronger - share prices of other hospitality stocks such as Hilton, Marriott, and IHG suggesting a favourable market environment. In the past five years, Hilton’s, Marriott’s and IHG’s share prices have grown by 134 per cent, 86 per cent and 67 per cent respectively.
What they said
Stefan Petrikovics, CEO of SMG Holding said: “Sircle is ideally positioned in the fast-growing European tourism and lifestyle hospitality sector. With the expansion of its hotel portfolio and its focus on high-quality lifestyle concepts, Sircle is pursuing a clear strategy that impresses us as SMG Holding. With our prepared structures for a listing, we are therefore the ideal partner to grow successfully together in the long term.”
Liran Wizman, founder and chairman of Sircle Hospitality Group added: Sircle Hospitality Group’s merger with SMG European Recovery marks a milestone as we become Europe’s premier boutique hospitality group. With plans to open 100 hotels and the continuous expansion of our F&B offerings, we’re set to raise standards and shape the future of lifestyle hospitality.”