Hyatt is continuing to expand into Europe.

Hyatt's European footprint was boosted by the takeover of Apple Leisure Group, even though it seemed like a play for all-inclusive resorts. On Thursday, the company announced a partnership with a German company.

More than 30 hotels across seven European countries will join the Hyatt brand portfolio and integrate into the World of Hyatt loyalty program as a result of the Lindner deal. The JdV by Hyatt brand is a collection of independent hotels that offer more distinct flavors than a stand-alone Hyatt Regency.

Hyatt CEO Mark Hoplamazian stated that the addition of Lindner's desirable hotel portfolio will substantially grow Hyatt's brand footprint in Germany and bring our guests and eventually our World of Hyatt members to a variety of new destinations across Europe. We are grateful for the trust the Lindner team has placed in us and are excited to strengthen our collective guest offering through strategic capital investments being made by Lindner.

A Hyatt spokesman wouldn't say if the partnership was only a stepping stone to an eventual acquisition or if it was only a first step.

The Hyatt-Lindner partnership plays into the growing hotel industry ideology that major hotel companies are likely to grow with "bolt-on" or "tuck-in" deals that fill in geographic or branding blanks. Marriott achieved one of these deals in Europe with AC Hotels in the past, and the deal gave Marriott a geographic lift before expanding the brand around the world.

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Brand strategy

Lindner is not a household name in the U.S., but Hyatt said the deal gives it a boost in the lifestyle hotel segment. Food and beverage is one of the things that lifestyle hotels put a lot of emphasis on. JdV by Hyatt is a collection of original hotels with a deep respect for the neighborhoods that make up each destination.

There is a portfolio of hotels on the Lindner website. Lindner has a mix of airport and business travel hotels as well as more leisure oriented hotels. Lindner Hotels & Resorts is a brand of the company.

There is no public knowledge of which hotels will be shifted to JdV branding. Lindner has better global support and recognition than Hyatt.

Lindner CEO Arno Schwalie said that the collaboration is unique in the German market. Lindner is a strong brand with its own identity and corporate independence, now aided by the power of Hyatt's global brand awareness and first class sales and marketing capabilities.

Bottom line

Most of Hyatt's competitors focused on China while Hyatt focused on Europe during the Pandemic. Europe was expected to be the last region to recover from the coronaviruses.

The European strategy seems to be the smarter one. China's reopening plans for international travel remain uncertain, and tough lockdowns continue to pop up in certain cities. Europe seems to be booming on the hotel front despite the conflict in Ukraine.

At the end of last month, European hotel performance was up 14 percent compared to a decline in China.