NEW YORK, Dec. 13, 2018 (GLOBE NEWSWIRE) -- via OTC PR WIRE-- Exxe Group, Inc (OTC: AXXA), a diversified company focused on synergistic acquisitions in real estate, fintech, Ai, media and financial services announced today the signing of a memorandum of understanding to acquire control of Quantum Leap Hotels(QLH) - a Swiss hotel group that owns and operates several boutique hotels in Germany and Switzerland. The deal for the three hotels is valued at € 10.2m. The closing for the properties is expected at the completion of the due diligence during Q1 and Q2 of 2019.
The following is a listing of the hotel acquisitions:
1. Hotel in Northern Bavaria with 59 rooms. This property is brand new and it was built just a few months ago. Located in the very dense industrial area, close to headquarters of famous car manufacturers such as Audi and BMW, this property will be in high demand from business clients of the car’s manufacturer and suppliers.
2. Hotel in Southern Bavaria with 29 rooms. The current owners operate the hotel with low occupancy rate. Once the hotel is taken over, Exxe will increase the rate of occupancy to operate at a full capacity and the yield can be significantly increased. This hotel is primarily used as a conference hotel due to its central location in Germany and good access to motorways.
3. The hotel has 25 rooms and is located in the area of Würzburg in Southern Bavaria. It is located in a historic center and it has high occupancy rate. The hotel went through complete renovation keeping its historic charm.
Currently revenues from the three properties is 3.6 mln with EBITA 0.8 mln. All properties are profitable. Exxe and Quantum Leap Hotels is expected to continue expanding its portfolio over the next few years via acquisitions. In 2019, Exxe Group plans to acquire 10 more hotels as part of its expansion plans. The hotels considered for acquisitions include the properties not only in Bavaria but also in a number of tourist and business travel attractions in Europe.
Exxe Group through its network of seasoned relationships has access to a pipeline of off - the - market properties. It gives Exxe a competitive edge to opportunistically prescreen the inventory before it hits the market and scout the best options. EG and QLH structure business succession for the retiring owners of family owned boutique hotels and provide much needed capital infusions, along with skilled and trusted hotel management. Due to these improvements and Exxe Group’s unique international personal relationships, EG and QLH are able to achieve increase in overall value of the enterprise with solid cash flows minimizing initial cash outlay.
In the future Exxe Group’s goal is to scale the operations of boutique hotels through the consolidation and improved management reducing administrative costs and providing management consulting and strategic direction making. As Exxe Group’s CEO, Edward Nazmiev has stated, “Our goal is to rapidly expand into the hotel management sector. We focused on Germany and Switzerland as we have expertise in the region. We would like to achieve a leading positions in most growing European markets. Three boutique hotels will strengthen our portfolio. We are excited to bring another major opportunity to our investors.”
About Exxe Group: Exxe Group is a diversified corporation focusing on acquisitions in the following sectors: real estate, technology, media, and financial services. Exxe Group is an acquisition-driven company. The company strategy is to acquire controlling equity interests in undervalued companies and then take an active role in improving their performance - accelerating their growth by providing both access to capital and management expertise. For additional information go to www.exxegroup.com
CONTACT: Exxe Group IR firstname.lastname@example.org
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by the following words: "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "ongoing," "plan," "potential," "predict," "project," "should," "will," "would," or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Forward-looking statements are not a guarantee of future performance or results and will not necessarily be accurate indications of the time sat, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time the statements are made and involve known and unknown risks, uncertainties and other factors that may cause our results, levels of activity, performance or achievements to be materially different from the information expressed or implied by the forward-looking statements in this press release.