Last updated: 05:03 PM ET, Wed April 13 2016

China's Jin Jiang Rumored to Be Seeking Greater Stake in AccorHotels

Hotel & Resort | Patrick Clarke | April 13, 2016

China's Jin Jiang Rumored to Be Seeking Greater Stake in AccorHotels

China's Jin Jiang International (Holdings) Co. is weighing the possibility of increasing its current stake in French hotel group AccorHotels, Bloomberg reported 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.

PHOTO: Jin Jiang Hotel in Shanghai.

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.


You may use your Facebook account to add a comment, subject to Facebook's Terms of Service and Privacy Policy. Your Facebook information, including your name, photo & any other personal data you make public on Facebook will appear with your comment, and may be used on Click here to learn more.

Sandals Resorts: The 5-Star Luxury Included Resorts

Hotels & Resorts