China-based airline and logistics company HNA Group has bought a 20% stake in Spanish hotel group NH Hoteles for $614m.

The two companies will also set up a joint venture for the development of a chain of four-star hotels in China.

The joint venture will focus on NH Hoteles’ strategy of using low-risk strategies, including the management of third-party owned hotels.

The agreement will also manage several existing HNA hotels that fit the NH Hoteles brand image and segment, according to a company spokesperson.

NH Hoteles runs 400 hotels in 25 countries, mainly in Europe.