Jinjiang Group acquires Louvre Group in bid to expand to Europe
Jinjiang Holdings acquired France’s Louvre Group, estimated at EUR1.25-1.5 billion, and will fully integrate the two hotel groups.
Jinjiang Holdings announced plans to introduce its Metropolo Hotels and Jinjiang Inn hotel brands to overseas markets upon completing a full acquisition of France’s Louvre Group, estimated at EUR1.25-1.5 billion. Additionally, it will bring Louvre Group's products to China as part of its process of fully integrating the two hotel groups from back-end systems to other aspects.
Jinjiang International Hotels CEO Zhenggang Lu said the integration enables both groups to share customer sources and cost benefits in procurement and achieve economies of scale. "People are very interested in this acquisition. It came about for a number of reasons. First of all, China’s outbound tourism industry is rapidly developing and now records 100 million trips per year. France was identified as a top destination for Chinese travelers in our survey, so we immediately thought of the Louvre Group, which we worked with before. Our key consideration is brand development potential and we hope to introduce more brands to both groups in the future,” Mr Lu said. Louvres has four major hotel classes - Première Classe，Campanile，Kyriad, and Golden Tulip - with seven major brands.
“The back-end system linkup between the two hotel groups will include membership club management, a central reservation system, a front desk management system, financial services and procurement and HR systems. Jinjiang Holdings will also restructure and set up a China (Asia Pacific) and a Europe regional operation center,” Mr Lu said.(Translation by David）