China's Jin Jiang International (Holdings) Co. is weighing the possibility of increasing its current stake in French hotel group AccorHotels, Bloombergreported Tuesday, citing sources close to the situation.
Jin Jiang is already AccorHotels' top shareholder at 12 percent. However the company is eyeing a 20 percent stake in hopes of acquiring more influence over management, the sources told Bloomberg.
At AccorHotels' current share price, the additional eight percent stake would be worth approximately $836 million.
The sources told Bloomberg that Jin Jiang hasn't yet reached a final decision on whether to increase its stake. Nonetheless a move to gain more influence wouldn't be all that surprising given the recent trend of Chinese investment overseas.
After all, Chinese companies have spent nearly $100 billion in overseas deals through the first quarter of 2015, per Bloomberg.
Jin Jiang currently controls China's largest lodging company in terms of market value.
"Jin Jiang is one of the fastest-growing Chinese companies in the hotel industry, and they’ve been looking to invest more outside of China," lodging analyst Wouter Geerts told Bloomberg. "Now that more Chinese travelers are taking international trips, it’s important for Jin Jiang to benefit from that."
What's more, Geerts points out that many Chinese travelers are already familiar with AccorHotels' brands.
Plus, having just recently acquired luxury vacation rental company onefinestay for $169 million, AccorHotels has positioned itself for a promising future, one that its biggest shareholder will most likely aim to capitalize on.
TravelPulse
Please
contact us in case of Copyright Infringement of the photo sourced from the internet, we will remove it within 24 hours.
京公网安备 11010502030596号
