HNA Group sells Radisson hotel chain to an international consortium led by Jin Jiang International Holdings
The Chinese conglomerate HNA Group has reached an agreement regarding the sale of the Radisson hotel chain to an international consortium led by the Shanghai-based Jin Jiang International Holdings group.
The agreement provides for the sale of an initial 51.15% stake held by HNA Group in Radisson Hospitality AB, part of the Radisson Hotel Group, for approximately EUR 290 million. The agreed price of 35 Swedish krona (EUR 3.357) per share is 5% below the share price at the close of August 9, 2018.
The consortium led by Jin Jiang International will subsequently purchase another 18.50% of Radisson Hospitality shares held indirectly by HNA Group, as well as the group’s entire stake in Radisson Holdings, in exchange for an unspecified amount.
Jin Jiang International, which operates, among others, the Jinjiang and Park hotels in Shanghai, is the largest hotel chain in China, with a network of over 380 affiliated hotels and revenues of about USD 8.8 billion in 2017.
The acquisition of Radisson, which has over 1,400 hotels in its portfolio under brands such as Radisson Blu, Park Plaza, and Country Inn and Suites, will propel Jin Jiang to seventh place in the ranking of the world’s largest hotel operators.
HNA Group bought the Radisson hotel chain in 2016, when it was called Carlson Hotels.
The Chinese conglomerate, with businesses also in air transport, logistics, and real estate, is heavily indebted, having expanded aggressively in recent years. To reduce its debts, which at the end of last year totaled over EUR 81 billion, HNA was forced to sell several major stakes, including its 25% holding in Hilton Worldwide, valued at USD 6.5 billion.
In total, HNA has divested assets worth about USD 17 billion in the last year.
Source: Profit
Frequently Asked Questions
Who is the buyer of the Radisson hotel chain?
The Radisson hotel chain is being acquired by an international consortium led by the Shanghai-based Jin Jiang International Holdings.
What is the value of the initial stake sale?
HNA Group is selling an initial 51.15% stake in Radisson Hospitality AB for approximately EUR 290 million.
Why is HNA Group divesting its hotel assets?
HNA Group is selling assets, including Radisson and previously Hilton, to reduce its significant debt burden, which reached over EUR 81 billion.