Jin Jiang Weighs Bid for $2 Billion Hotelier Radisson
(Bloomberg) -- Chinese hospitality provider Jin Jiang International Holdings Co. is weighing a bid for Radisson Hotel Group, the global chain owned by HNA Group Co., people with knowledge of the matter said.
Jin Jiang, which is controlled by the Shanghai government, is in the early stages of considering a potential offer, according to the people. HNA could fetch at least $2 billion from a sale of Minneapolis-based Radisson, which may also attract other bidders, the people said, asking not to be identified because the information is private.
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 $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.
No final decisions have been made, and Jin Jiang could decide against proceeding, the people said. A representative for Jin Jiang didn't immediately respond to emails and phone calls seeking comment, while representatives for HNA and Radisson declined to comment.
Overseas Expansion
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.
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.
Radisson operates or has under development more than 1,400 hotels around the world under eight brands, including Radisson, Park Plaza and Country Inn & Suites, according its website. The group includes Stockholm-listed Radisson Hospitality AB, an operator of hotels in Europe, the Middle East and Africa with a market value of about $712 million.
HNA has been aggressively selling assets this year to pay down heavy debt incurred during a multiyear buying spree. It has sold $6 billion of stock in Hilton Worldwide Holdings Inc. and pared its stake in Deutsche Bank AG. It agreed to sell a Minneapolis office tower for $320 million to Samsung Group, people familiar with the matter said in June.
--With assistance from Carol Zhong and Prudence Ho.
To contact Bloomberg News staff for this story: Manuel Baigorri in Hong Kong at mbaigorri@bloomberg.net;Vinicy Chan in Hong Kong at vchan91@bloomberg.net;Steven Yang in Beijing at kyang74@bloomberg.net
To contact the editors responsible for this story: Ben Scent at bscent@bloomberg.net, ;Jessica Zhou at jzhou75@bloomberg.net, Peter Vercoe, Young-Sam Cho
©2018 Bloomberg L.P.
With assistance from Editorial Board
-
A New Samvat Wishlist: Inclusive Prosperity And Human Development
India has strengthened its economic foundations through infrastructure, digital access and enterprise. Its next growth chapter must deepen productivity, create better livelihoods and widen participation in prosperity.
-
Love, Sex Aur Dhokha: The Audacious Plot To Spy On Jensen Huang
A Taipei dinner, a Singapore chip buyer and a suspected Chinese asset: inside the alleged spy operation that got close to NVIDIA's Jensen Huang.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
