China-based franchised hotel operator GreenTree Hospitality Group has invested in Zhejiang New Century Hotel Management’s initial public offering (IPO).
New Century Hotel Management is engaged in the operation and management of mid-scale to upscale hotels in the People’s Republic of China (PRC).
GreenTree subscribed shares in New Century Hotel Management for an amount of $29.2m.
Upon conclusion, the company will own 4.95% of outstanding shares in New Century Hotel Management.
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New Century Hotel Management operated and/or managed 150 hotels with more than 34,000 hotel rooms in 22 provinces, municipalities and autonomous regions as of last year.
It has the highest market share in terms of the operating and contracted upscale hotel rooms in the domestic market.
Furthermore, New Century Hotel Management has different brands that have brand recognition in the hotel industry and an extensive loyalty programme.
In a statement, GreenTree said: “This investment is expected to benefit both GreenTree and New Century Hotel Management as there will be potential collaboration opportunities between the two companies in the mid-scale to upscale hotel segment to create value for customers, franchisees, and shareholders.”
GreenTree had 2,558 hotels, of which 2,528 are franchised and managed hotels as of 30 September 2018.
According to the China Hospitality Association, GreenTree was rated as the fourth largest economy to mid-scale hotel group in the country with regards to the number of hotel rooms.
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