Spanish hotel chains NH Hoteles and unlisted Hesperia have agreed to integrate their hotel management business, creating the largest Spanish hotel group in the urban segment, the hotels said in a statement.
The transaction will generate significant synergies both at income and expenditure level, giving NH Hoteles greater competitiveness, they said.
Hesperia currently holds 25 percent of NH Hoteles and will join its board.
Shares in NH Hoteles were suspended ahead of the announcement. The shares last traded up 3.9 percent.
(Reporting by Jonathan Gleave and Robert Hetz; Writing by Judy MacInnes; Editing by Dan Lalor)