Jin Jiang, which owns 12.3 percent of France’s Accor SA, has been expanding overseas through acquisitions as Chinese tourists travel increasingly far afield. Earlier this year, it bought control of Indian chain Sarovar Hotels, adding to an earlier acquisition of European hospitality provider Groupe du Louvre.
HNA could fetch at least USD 2 billion from a sale of Minneapolis-based Radisson, which may also attract other bidders.
Shares of the Chinese hospitality group’s main publicly traded arm, Shanghai Jin Jiang International Hotels (Group) Co., fell as much as 8.2 percent Thursday in Hong Kong and were headed for the biggest decline in six months. Investors are concerned about the listed unit’s leverage, and its ability to take on more debt is limited, Daiwa Capital Markets analyst Carlton Lai said by phone.
HNA is exploring a sale of Radisson as the embattled Chinese conglomerate offloads assets around the globe, Bloomberg News reported in June. Should the sale be completed, it would add to the more than USD 17 billion in divestments that HNA has made this year to lower its debt, which had soared to one of the highest levels in corporate China.
The Chinese company is known for its ownership of the historic Peace Hotel in Shanghai. In 2016, Jin Jiang bought a majority stake in the owner of Chinese economy hotel chain 7 Days Group Holdings Ltd.Add to Favorites