Chinese real estate developer Franshion Properties is seeking to raise up to HK$3.39bn ($437m) from a proposed listing of its hotels arm on the Hong Kong stock exchange.

The funds will be used to expand its business in China and refinance debts.

In March, Jinmao Investments Group announced plans to spin off its China commercial and retail complex, Jin Mao Tower hotel, and eight hotels in the mainland through an investment trust to be listed on the main board in Hong Kong.

Franshion unit China Jin Mao Group vice president Andy Ding told Reuters that the firm will work with online platforms to promote holiday packages, and will also look at opportunities overseas targeting Chinese tourists.

"As China’s gross domestic product grows, people’s request for quality has increased, so now the mid-tier […] has large room to grow and great potential."

"Budget hotels have had explosive growth in the past and become saturated. As China’s gross domestic product grows, people’s request for quality has increased, so now the mid-tier, which is the three- to four-star (hotels), has large room to grow and great potential," Ding added.

Franshion Properties is a developer and operator of large-scale and high-end commercial real estate projects in China, and also a platform enterprise under the real estate and hotel segments of Sinochem Group.

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.

The hotels within its portfolio are working with online travel agents such as eLong and Ctrip.com International, in a bid to attract domestic travellers.

According to market consultant DTZ, revenue attributed to domestic and foreign inbound tourism grew 24% and 3.5%, respectively, between 2007 and 2012.