Accor Further Sells Down Stake in China’s Huazhu Group
Main Photo: The Huazhu Ji Suzhou Guanqian St Hotel
Date: February 2021
Location: Mostly in China….but in 16 countries
Name: Huazhu Group, with brands: Hi Inn, Elan Hotel, HanTing Hotel, JI Hotel, Starway Hotel, Orange Hotel, Crystal Orange Hotel, Manxin Hotel, Madison Hotel, Joya Hotel, Blossom House and Ni Hao Hotel.
No. of Keys: 652,162 – 6,789 hotels!
Seller: Accor has sold a further a 1.5 per cent stake in Huazhu Group of China for €239 million as it continues to battle the fallout from the Covid-19 pandemic.
The French company said the transaction would reap the benefits of the initial investment, while also simplifying its balance sheet.
After this transaction, Accor will own a 3.3 per cent stake in Huazhu and continues to be represented on the board of directors.
Following a $451 million deal in December 2019, Accor was left with 5.5. per cent of the Nasdaq-listed multi-brand Chinese hotel company.
Accor and Huazhu will continue to develop a partnership, which was originally launched in early 2016.
A master-franchise agreement between the two has enabled the openings of 300 economy and mid-scale hotels in China, mainly under the ibis, Novotel and Mercure brands.
More than 200 properties in the pipeline are scheduled to open over the next three years.
THPT Comment: Accor shoring up the coffers? Given it still allows them to partner up with Huazhu to allow their expansion of the brands into China, makes sense.
First Seen: Breaking Travel News
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