Major Chinese hotel operator Huazhu Group acquired the company behind the Steigenberger luxury hotel chain for 719.9 million euros ($793 million), the Shanghai-based company announced.

The Nasdaq-listed Huazhu will buy all shares in Deutsche Hospitality through a Singaporean subsidiary. Huazhu, established in 2005, operates more than 5,000 hotels in 400 cities worldwide. The company says it ranks ninth globally by room count.

Chinese corporate investment in Germany has slowed lately due to increased scrutiny by authorities in Berlin, but some observers see the two countries moving closer again amid sluggishness in the European nation's economy. Deutsche Hospitality operates 118 hotels, mainly in Europe, including  such brands as the 89-year-old Steigenberger and the IntercityHotel business chain. 

Huazhu began as a provider of budget accommodations but has gone upscale. The latest acquisition is part of an effort to strengthen its luxury hotel business. Under Huazhu's umbrella, Deutsche Hospitality will press ahead with plans for expanding to 250 properties, including in the Middle East and Africa, by 2024. Chinese investment in Germany totaled $500 million in 2019.