Jin Jiang Hotels increases its stake in Plateno Group to 93%
To further integrate resources and reduce costs, Jin Jiang International Holdings will acquire 12.0001% stake held by Prototal Enterprises Limited in Keystone, a Jin Jiang subsidiary that controls Plateno.
Shanghai-based Jin Jiang International Holdings will acquire 12.0001% stake held by Prototal Enterprises Limited in Keystone Lodging Holdings Limited, which, through its subsidiary Plateno Hotels Group, owns and operates hotels. After the transaction, Jin Jiang will boost its shareholding in Keystone from 81.0034% to 93.0035%, according to a Jin Jiang announcement on October 20.
Jin Jiang has been considering its moves into the mid-range hotel market in China following the full acquisition of France’s Louvre Group. On February 26 last year, Jin Jiang closed the strategic investment in Plateno. Following the acquisition, Jin Jiang has two budget hotel brands – Jin Jiang Inn and 7 Days Inn and several mid-range hotel brands like Metropolo Jin Jiang, Lavande Hotels and James Joyce Coffetel. That has helped Jin Jiang establish a presence in the mid-range hotel market, and build its own direct sales platform with Plateno’s well-developed membership management system.
In recent years, hotel groups in China have been venturing into the mid-range market, and the performance of budget hotels has also picked up. Plateno has increased the number of its new hotels to 3,298 by the end of August. The group’s net profit grew by 127.55% in the first half of 2017, and the RevPAR in August alone rose more than 10%. Jin Jiang promised 2017 to be a year of integration in its 2016 annual report. After integrating the established system of Plateno into the IT and supply chain areas, it has helped the group cut down the costs, according to the company’s management.