Chinese hotel chain 7 Days Group Holdings has completed its 100% acquisition of Hunan Huatian Star Hotel Management from Huatian Star’s parent company Huatian Hotel Group for CNY136m ($21m).
The hotel chain now has ownership of 21 leased-and-operated Huatian Star hotels in locations spread across 12 cities in China, including Changsha, Wuhan and Zhengzhou.
The 7 Days Group has taken operational responsibility of the hotels and completed the conversion process for the majority of them.
7 Days Group CEO and director Alex Nanyan Zheng said the acquisition is in line with the company’s expansion strategy.
The acquisition will also complement the hotel’s organic growth, further expanding its footprint in China as the country’s economy hotel market continues to consolidate.
"We believe that the current market environment may provide additional acquisition opportunities at reasonable prices," said Zheng.
As of 30 September 2011, 7 Days Group had 838 hotels in operation, consisting of 364 leased-and-operated and 474 managed properties, representing a total of 83,487 rooms covering 127 cities.
There were 251 hotels in the development pipeline during the same period, including 43 leased-and-operated properties under conversion and 208 managed hotels contracted but not yet opened.