Country Garden Group contemplating hotel spinoff
Country Garden Group plans to create a spinoff hotel company but has yet to determine if it will be listed, whether in the mainland or in Hong Kong.
Foshan-based property developer Country Garden had healthy capital return last year collecting RMB106 billion payback on RMB128 billion sales. Its inventory worth over RMB100 billion will account for 60%-70% of sales this year, while new developments will make up the remaining 30%-40% of sales, according to Country Garden CFO Jianbin Wu.
He also said Country Garden’s hotel segment worth over RMB20 billion comprises 4% of the group’s market value. The group plans to create a spinoff hotel company but has yet to determine if it will be listed, whether in the mainland or in Hong Kong.
Country Garden has 45 hotels, 41 of them are five-star properties, offering a total of 13,000 rooms in Guangdong, Hunan, Hubei, Anhui, Jiangsu, Liaoning, Inner Mongolia, Chongqing and Tianjin. The hotel segment leverages the group’s scale to achieve rapid growth, providing excellent business facilities and leisure amenities to a varied clientele in its conference, mountain and lake, golf, hot spring, prairie, and seaside resort themed hotels.
Country Garden currently has 30 hotels under construction and plans to have 65 hotels in operation in 2015. It is one of the most powerful domestic hotel brands in China and is taking the brand worldwide as it expands to Malaysia, Australia, Singapore, New Zealand, the USA, Canada and various markets in Asia-Pacific.(Translation by David)