Metropark takes control of UK’s Kew GreenHotels
Kew GreenHotels Ltd, the United Kingdom-based hotel management company, has been acquired by Chinese hotel company HK CTS Metropark Hotels Company Ltd for an undisclosed price.
HK CTSMetropark, a subsidiary of Hong Kong-based China National Travel Service (HK) Group Corporation, said on Tuesday that it purchased all the issued shares of Kew Green Hotels Ltd from Goldman Sachs and TPG Special Situations Partners, which had owned the UK group since 2013.
This is not the first time that HK CTS Metropark Hotels is going global. In 2014, the company signed an agreement to manage the first five-star hotel in the Republic of Guinea with 331 rooms and 40 apartments.
Sun Wu, general manager ofHKCTSMetroparkHotels, said the purchase will provide a strategic growth platform for the company within theUKand across Europe.
“It is also a solid step for the going global strategy of HK CTS Metropark Hotels,” Sun said.
The Chinese company chose to purchase the UK hotel management firm for the good tourism environment in the country.
Europe, including the UK, is already an important tourism destination for global travelers, said Xu Muhan, chairman of HK CTS MetroparkHotels.
China’s booming outbound tourism market has been one of the main reasons why Chinese companies have been acquiring overseas hotels, industry experts said.
The number of outbound travelers fromChina stood at 114 million person-trips in 2014, according to the China Tourism Academy. During the first six months of the year, the number surged to 61.9 million, a 16 percent year-on-year growth.
Anbang Insurance Group spent $1.95 billion to buy Waldorf Astoria Hotel in New York earlier this year, while Sunshine Insurance Group purchased Baccarat Hotel inNewYork for about $239 million in February.
But the situation is changing from pure-play acquisitions, as Chinese companies are more keen on the management of overseas hotel properties, rather than just make profits, said Xia Yangyang, director of the international capital group at Jones Lang LaSalle China.