While Chinese tourists develop a growing appetite for overseas travel, Chinese firms also try to capture this strong growth potential. Jin Jiang’s acquisition of Louvre Hotels Group is the most recent example.
This deal is the result of long-term good relationships between the two parties. Back in 2011, Jin Jiang and Louvre Hotels Group established a commercial partnership which introduced co-branding program to selected hotels in China and France. The Chinese group owns and operates over 1,700 hotels in 11 countries, and Louvre Hotels Group is the second-largest hotel group in Europe with a network of more than 1,100 hotels (including 820 in France).
With the rise of personal incomes and living standards of Chinese, China’s outbound tourism market grows by leaps and bounds. In 2014, the number of outbound tourists reached 107 million, up 19.49% compared with 2013. Jin Jiang is not the only Chinese firm showing interest on this growing market. In February 2015, Anbang Insurance Group made headlines with its record-setting $1.95 billion purchase of New York Waldorf Astoria hotel, and Hong Kong-based investor Kai Yuan Holdings also acquired Paris Marriott Hotel Champs-Élysées by €344 million in October 2014.
Bidder advisors :
Financial: Guotai Junan Securities Co Ltd
Legal: Baker & McKenzie, Fangda Partners, King & Wood Mallesons, Shearman & Sterling LLP
Financial: Deutsche Bank AG, Goldman Sachs
Legal: Davis Polk & Wardwell LLP, White & Case LLP
On the photo: Yu Minliang (chairman of the Board and executive Director of Jin Jiang) and Pierre-Frédéric Roulot (CEO of Louvre Hotels). ©Louvre Hotels