Wanda Hotel Development has agreed to divest its hotel management unit to Tongcheng Travel for 2.5bn yuan ($342m).

Wanda Hotel Management’s business is focused on hotel management, design, and construction. It handles a portfolio of nine hotel brands, ranging from luxury to midscale.

As of 31 December 2024, Wanda Hotel Management had 204 hotels with more than 40,200 rooms. Another 376 hotels were under contract but not yet open.

The unit reported $122m in 2024 revenue and accounted for around 90% of Wanda Hotel Development’s revenues.

The agreement, which will enhance Tongcheng Travel’s capabilities in the hotel sector, is pending approval from Wanda Hotel Development's shareholders' meeting and associated government departments.

In a statement, Wanda Hotel Management said: “The equity cooperation will help both parties to complement each other's strengths and jointly enhance their competitiveness in the Chinese hotel market.

“We firmly believe that the future of China's tourism market is full of infinite possibilities. If Wanda Hotel Management Company can cooperate with Tongcheng Travel and take advantage of its strong digital capabilities and traffic advantages, it will surely bring better returns and experience to our owners and customers with its brand advantages and operational experience accumulated over the years.”

All brands under Wanda Hotel Management Company will continue to maintain the current operating standards while the existing management team and organisational structure will continue as usual.

The deal will also include the normal implementation of all signed cultural, commercial, tourism and hotel project management agreements.

Tongcheng Travel is a one-stop shop for users' travel requirements, offering a range of innovative products and services such as transportation ticketing, accommodation bookings, tourist attraction tickets, and packaged tours.

Tongcheng’s existing hotel management business focuses on upper-midscale, midscale, and economy brands.