451 million dollars for about 5% of the Chinese group's capital to be sold by the French group. The European leader will retain a 5% stake in the Chinese group.
Founded in 2005, Huazhu, represented 3,907 hotels as of January 1, 2019, or 388,087 rooms (according to the ranking by Hospitality ON), in over 350 business and leisure towns in China. Its brands range from economy to upscale segment, among which Joya Hotel, Manxin Hotels & Resorts, Ji Hotel, Starway Hotel, HanTing Hotel, Elan Hotel, and Hi Inn. Otherwise known as China Lodging Group, the firm entered into the capital of Accor in 2018 with 4.5% stake. It is a cross-participation, since Accor held 10.3% of Huazhu before the cession. A partnership which started in 2016.
Since the creation of this partnership, the French group has set up 200 budget and midscale hotels in China, mainly under the ibis, Novotel and Mercure brands. A pipeline of 250 properties is expected to be completed within 3 years.
After refocusing its assets at the beginning of the year, the Chinese group invested €700 million in the German group Deutsche Hospitality in November. Thus building a new bridge to Europe. In May 2018, the Chinese group disbursed €489 million to acquire a 4.5% stake in Accor.
This cession allows the Accor group to generate liquidity, to be continued...