Starwood Capital Group on Wednesday announced it sold Louvre Hotels Group, which it acquired in 2005 for US$3.2 billion, to Jin Jiang International Holdings Co., Shanghai. Although the price was not officially disclosed, the Wall Street Journal reported this deal was worth more than US$1.49 billion, citing “people familiar with the matter.”
Jin Jiang International Holdings owns and operates more than 1,700 hotels in 11 countries; Louvre has a network of more than 1,100 hotels in more than 40 countries worldwide under brands including Kyriad, Campanile and Royal Tulip.
In November 2011, Louvre and Jin Jiang established a commercial partnership including a co-branding program to selected hotels in major cities of China and France. The partnership aimed to build public awareness of Louvre and Jin Jiang in each other’s home markets and boost hotel tourism between the two countries.
The closing of this transaction, which is to be completed through Starwood affiliate Star SDL Investment Co., is expected to take place during the first quarter of 2015.
“There is strong complementary synergy between Louvre and Jin Jiang in brand portfolio, geographic footprint and guest base,” said Yu Minliang, chairman of Jin Jiang International Holdings Co. “We are looking forward to working with the management, employees and other stakeholders of Louvre Hotels Group to create larger space for both parties to grow globally.”