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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

"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.