Wired News – China Lodging Group Acquired Beijing Novotel Sanyuan and Ibis Beijing Sanyuan with TPG Capital Asia

LONDON, UK / ACCESSWIRE / January 31, 2018 / Active-Investors.com has just released a free research report on China Lodging Group, Ltd (NASDAQ: HTHT). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=HTHT as the Company’s latest news hit the wire. On January 29, 2018, the Company announced that it has formed a joint venture with TPG Capital Asia to acquire 100% equity interest of two hotel properties in Beijing, Novotel Beijing Sanyuan, and Ibis Beijing Sanyuan, from Ascendas Hospitality Trust (Singapore), for a cash consideration of approximately RMB 1.18 billion. The Joint Venture is 20% owned by China Lodging Group and 80% owned by TPG. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, China Lodging Group most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Novotel Beijing Sanyuan and Ibis Beijing Sanyuan are adjacently located in prime locations in Chaoyang District, Beijing’s central business area, also known as CBD, which serves as a hub where multinational companies and foreign embassy compounds are based.

Details of the Agreement

The transaction, likely to close in the first half of 2018, is subject to regulatory approvals and customary post-closing adjustments. Hitone Capital, a boutique real estate focused investment firm, served as the financial adviser for the transaction, and will continue to provide support on closing and asset management. China Lodging does not expect this transaction to have any significant impact on its revenue and profit in 2018. The cash outflow for this transaction will be approximately USD 20 million.

Following the closing of the acquisition, the Joint Venture will renovate the hotels and Huazhu will continue to serve as operator. Huazhu is as a leading hotel operator in China, and has a diversified brand portfolio from economy, midscale to upscale segments and has strong operation capability.

Acquisition Will Strengthen the Company’s Upscale Brands

Jenny Zhang, Chief Executive Officer of the China Lodging Group, stated that the acquisition enables the Company to create new flagship hotels by renovation and operational improvement. It will not only strengthen China Lodging Group’s upscale brands, but also generate good return for its invested capital.

China Lodging Group’s Strategic Partnerships and Acquisitions in 2017

Alliance with OYO: In September 2017, the Company entered into a five-year Memorandum of Understanding (MoU) with Oravel Stays Private Ltd. (OYO), India’s leading hospitality company, to facilitate and strengthen collaboration to build a global market leading hospitality business. Under the MoU, both companies would explore opportunities for mutual collaboration in four fields, knowledge and technology sharing, strategic alliances and partnerships in various areas, including but not limited to local sourcing and procurement and joint loyalty programs, new venture partnership opportunities, and investment. As part of this collaboration, China Lodging Group made an equity investment of US$ 10m in OYO to become a minority shareholder.

Acquisition of Crystal Orange Hotel Holdings Limited: In May 2017, China Lodging Group’s wholly-owned subsidiary, China Lodging Holdings (HK) Limited, completed the acquisition of all of the equity interests of Crystal Orange Hotel Holdings Limited, a leading boutique hotel operator in China. The initial aggregate consideration of the transaction was approximately RMB3.65 billion. The agreement was previously announced in February 2017. This strategic acquisition combined Crystal Orange’s unique positioning with China Lodging’s extensive coverage and strong development capability in China.

About China Lodging Group, Ltd

Founded in 2005 and headquartered in Changning District, Shanghai, China Lodging Group Limited is a leading hotel operator and franchisor in China. As of December 31, 2017, the Company had 3,746 hotels or 379,675 rooms in operation in 378 cities. China Lodging’s business includes leased and owned, manachised, and franchised models.

About TPG Capital

Established in 1992, TPG Capital is a leading global alternative asset firm, with more than $74 billion of assets under management. The Company’s investment platforms are across a wide range of asset classes, including private equity, growth venture, real estate, credit, and public equity. In Asia, TPG Capital is one of the earliest global private equity investors in China and established its first Asia-focused fund in 1994.

Stock Performance Snapshot

January 30, 2018 – At Tuesday’s closing bell, China Lodging Group’s stock marginally climbed 0.57%, ending the trading session at $150.56.

Volume traded for the day: 411.83 thousand shares.

Stock performance in the last month – up 7.02%; previous three-month period – up 16.12%; past twelve-month period – up 180.86%; and year-to-date – up 4.24%

After yesterday’s close, China Lodging Group’s market cap was at $10.50 billion.

Price to Earnings (P/E) ratio was at 60.25.

The stock has a dividend yield of 0.43%.

The stock is part of the Services sector, categorized under the Lodging industry.

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