China’s Jin Jiang Hotels Group has invested RMB1.8 billion (US$289.8 million) for an 80% stake in the mid-market Vienna Hotel Group, according to a report from China Travel News.
Jin Jiang reportedly outbid major competitor HNA Hospitality Group and property developer giant Sino-Ocean for the deal. The news comes just as Jin Jiang moved into the due diligence process to merge with China’s Plateno Group.
The acquisition of Vienna Hotels Group will add an additional 479 hotels with 60,000 rooms to Jin Jiang’s hotel portfolio. The two moves would also give Jin Jiang coverage in a much broader range of market segments.
Vienna Hotel Group was established in 1993 and now boasts 500 hotels (including those under construction) of 3- to 5-star properties in more than 100 cities across China under six brands — including the Vienna Hotel, Venus Royal Hotel and Vienna Apartment Hotel.
China Travel News also reported that Vienna Hotel Group’s Wudaoxiang restaurant chain (40 restaurants under four brands) will be included in the deal as well.