International hotel group Leonardo Hotels Central Europe (LHCE) has announced a strategic expansion plan fuelled by an investment partnership, which bears the name Fattal Partnership III (International) LP, that could reach €400m ($427.0m).

The group expects that the initial investment commitment of €246m will increase to €400m.

The move marks the company's third partnership agreement, concluded in January, with major Israeli institutions, demonstrating its commitment to growth.

Focus on both business and leisure travel

Previously known for its presence in central European business hubs, LHCE is now expanding its reach.

The new investment will allow the company to strengthen its existing business and conference segment while venturing into the leisure travel market.

The shift is evident in their recent acquisitions of hotels in popular vacation destinations Lake Garda, Mallorca, Ibiza and Paris.

New brand debuts in Germany

The company is also introducing a new brand to the German market – Leonardo Limited Edition.

This curated collection features unique, character-driven hotels with individual stories to tell.

The first property under this brand, the Nikolai Hotel Hamburg, opened its doors in April 2024 and offers 94 stylish rooms and suites in a historic building.

Expansion in Eastern Germany and Poland

Leipzig, Germany, is set to welcome a new NYX Hotel by Leonardo Hotels. This brand is known for its artistic and design-centric approach. The opening is scheduled for 2026.

Meanwhile, LHCE is doubling the room capacity at the Leonardo Royal Warsaw, underlining the importance of the Polish market. The expansion will add 184 new rooms, along with a complete renovation of public areas and existing rooms.

LHCE is now poised for significant growth. The expansion plans will not only solidify its presence in established markets but also open doors to new destinations and cater to a broader range of travellers seeking both business and leisure experiences.