3 Chi­nese suit­ors in fray for Star­wood

Suc­cess­ful bid would top Shuanghui’s $7b bid for Smith­field

China Daily (Canada) - - LIFE -

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.

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