(Yicai Global) Aug. 16 -- Huazhu Hotels Group, which operates brands such as Hi Inn, Novotel and Grand Mercure in China, has bought a majority stake in Blossom Hill Hotel Investment Management to expand its mid- to high-end accommodation business.
Huazhu acquired 71.2 percent of Shanghai-based Blossom Hill's stocks from two former shareholders Beijing Tsingpu Travel Culture Development and Tongcheng Tourism Group for nearly CNY463 million (USD67.1 million), state-backed The Paper reported. Upon completion of the deal, Shanghai-based Huazhu will hold a 82.5 percent stake in the target company.
"With the addition of Blossom Hill Hotels & Resorts to our hotel portfolio, we are able to offer more diversified choices to our over 100 million Huazhu Rewards members; at the same time, this acquisition is also expected to improve Blossom Hill's occupancy rate," Chief Executive Jenny Zhang said.
Blossom Hill owns some 21 boutique hotels, all located in popular tourist destinations such as Lijiang and Shangri-La in Yunnan province, and Hangzhou in Zhejiang province. Tsingpu Travel bought the majority stake in the hotel chain last year in March.
Editor: Emmi Laine