Plateno Group and Jin Jiang Hotels have agreed on a merger, creating the largest hotel group in China, according to China Travel News. A source close to the merger said the companies are considering acquiring Starwood Hotels & Resorts Worldwide.
“If it managed to acquire Starwood, it would mean China will have the largest global hotel group in the world,” the unidentified source told China Travel News. “The Jin Jiang-Plateno merger is just the forerunner.”
The source added that Chinese hotel groups are taking advantage of the European debt crisis and U.S. economic downturn that has resulted in the devaluation of overseas hotel assets.
Currently, Plateno is ranked second in China’s hotel industry, and Jin Jiang is the fifth largest.