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hotel group Groupe Du Louvre for up to 1.21 billion euros ($1.33 billion).
“Acquisitions are the best way for hotel groups to expand abroad as they enable the brand to be known to a larger group of consumers. With more Chinese tourists making overseas trips every year, the hotelier is sure to benefit from the acquisition,” Li said.
Li Lei, deputy director of the securities research institute of Minzu Securities Co Ltd, said: “HNA Group is also completing its industry chain globally through acquisitions, including aviation, airport management, logistics and tourism. To reduce business risks, the group has been expanding into related industries through overseas acquisitions, such as aircraft leasing and hotels.”
HNA Group acquired a 29.5 percent share in NH Hotels, a Spanish hotel chain, and became its largest shareholder in 2014. The group also purchased a landmark office building in Canary Wharf, a financial district in London, in September.
Xia Yangyang, director of international capital at global property company JLL, said acquisitions are an ideal option forChinese investors to diversify their global investments and reduce risks.
JLL is expectingChina’s outbound investment into real estate to reach $20 billion by the end of this year, up from $16.5 billion in 2014.