AccorHotels is taking a 30% stake in 25hours Hotels to accelerate the global expansion of the brand.
The German business currently has eight hotels in Hamburg, Frankfurt, Berlin, Zurich and Vienna.
A further five hotels are planned to open in the next two years in Zurich, Munich, Cologne, Düsseldorf and Paris.
The company has been looking to expand into other European countries for some time, and is now also targeting long haul destinations, 25hours Hotels said.
AccroHotels chairman and CEO Sébastien Bazin said: “This alliance came about because we were immediately attracted by these individual, design-oriented boutique hotels that are a great workplace for urban nomads and an ideal starting point for outings into key cities.
“Through this partnership, AccorHotels is investing further in one of the fastest growing segments in the industry and enriching its offer to achieve scale in this segment.
“Today, we are going one step further in our strategy to be a global leader in lifestyle hotels.”
Christoph Hoffmann, CEO of 25hours Hotels added, “Loyal partners have supported our growth in the German-speaking market for the past ten years and we now also have the opportunity to conquer the world with a global partner.
“This strategic partnership represents a key milestone in our company’s history and a new adventure we are looking forward to.”
He added: “Designing appealing hotels with exciting concepts is not enough. A country network with local experience and expertise is also needed.
“Thanks to AccorHotels’ longstanding know-how and worldwide support infrastructure, this is precisely what we now have on every continent”.
25hours Hotels will continue to be run by Hoffmann and its management team.