Franchised hotel operator GreenTree Hospitality Group has teamed up with the Urban Hotel Group, an owner and operator of hotels and cafes in China.
Both the companies have entered into strategic cooperation and investment agreement.
The deal is in line with GreenTree’s expansion plans and will complement its business.
According to GreenTree, more than 600 and 31,000 of hotels and hotel rooms, respectively, come within the scope of this cooperative investment transaction.
GreenTree chairman and CEO Alex Xu said: “We are thrilled to team up with the Urban Hotel Group. Its economy to mid-scale hotel brands networks, an increasingly attractive sector with rapid development that is more resilient to economic cycles, will reinforce our hotel brand portfolio in China.
“Overall, we are confident that this cooperation will benefit our shareholders, franchisees, and our customers in the foreseeable future.”
The Urban Hotel Group consists of nine hotel brands, as well as a café chain My Zone Coffee.
The nine brands are Han Hotel, Urban Garden Hotel, City 118 Selected, City 118, Youth Mini Hotel, My Zone Hotel, City Mini Selected, Monochrome and Unistar Group.
Completion of the deal is subject to customary closing conditions and is expected to be completed in the second half of this year.
Urban Hotel Group founder and CEO Yihan Chen and the management team will continue to lead the group following the closing of the transaction.
Chen said: “I am very pleased to join forces with the GreenTree family. We see tremendous synergies and benefits from this collaboration.”
“Leveraging our core strengths in operating capacity and creativity and GreenTree’s proven leadership team and strong resources in the Chinese market, we will be better positioned to innovate and implement new concepts.
“As we share resources, we will attain a new level of expertise and build a larger platform, creating competitive advantages in order to accelerate and stabilise our hotel brands footprint. This will undoubtedly help grow the Urban Hotel Group brands in our key markets.”