A new owner for Radisson Hotel
The Radisson Hotel group has changed hands from one Chinese conglomerate to another.
Hainan-based HNA Group has sold the hotel group to a consortium headed by Jin Jiang International Holdings. Jian Jiang is controlled by the Shanghai government.
The deal offloads the Radisson portfolio which currently includes the Radisson, Radisson Blu, Radisson Red, Radisson Collection, Park Plaza, Park Inn, Country Inn & Suites and Prizeotel brands.
According to the company’s website, Radisson operates or has under development more than 1400 hotels around the world under eight brands.
These include Radisson, Park Plaza and Country Inn & Suites. Stockholm-listed Radisson Hospitality AB, an operator of hotels in Europe, the Middle East and Africa with a market value of about $712 million is also part of the group.
The deal is part of a trend that has seen Chinese corporations offloading foreign assets in the wake of a national crackdown on international investments.
HNA has been divesting properties to lighten up on its debt load. That debt load is said to be one of the largest in China.
According to Bloomberg, the sale could make HNA an extra $2 billion.
In April, HNA announced it would sell its 26 per cent stake in Hilton Worldwide.
The group has also offloaded shares of Spain's NH Hotels earlier this summer.
The HNA business is widely spread. In addition to hospitality, its holdings span the airline, financial services and real estate industries.
Data from STR shows that the Radisson business will build Jin Jiang's footprint to an estimated 344,000 rooms.
This is a deal that will make it the world's seventh largest hotel company.
Jin Jiang has a huge presence in the industry. It also holds a stake in Accor, has been in expansion mode, purchasing European hospitality company Groupe du Louvre and India's Sarovar Hotels in 2015 and 2017, respectively.
Jin Jiang is best known as the owner of the historic Peace Hotel in Shanghai. It also acquired a majority stake in the owner of Chinese economy hotel chain 7 Days Group Holdings Ltd in 2016.
Leon Gettler - 14 August 2018
