Hotel group GreenTree springs into IPO action
GreenTree, one of China’s largest hotel franchises, intends to put down further roots in the US, though this time through an IPO in New York worth up to USD 600.00 million, Caixin reported.
A source with knowledge of the matter told the newspaper the Chinese chain has hired Morgan Stanley and Bank of America Merrill Lynch to handle an overseas debut slated for the second quarter of 2018.
This person, who declined to be named as the matter is still private, suggested the listing of the self-proclaimed sixth-largest franchise globally could be worth between USD 400.00 million and USD 600.00 million.
If a first-time share sale went ahead, then GreenTree would be following in the footsteps of other domestic players like Jinjiang and Beijing Tourism Group, though China Lodging is the only other one with a US quotation.
The Shanghai-based chain first opened its doors in 2004 and has since branched out to own more than 2,600 hotels across China and southeast Asia, but it also offers serviced apartments and business accommodation.
GreenTree is the 14th biggest hotel brand, with banners ranging from GreenTree Eastern Hotel and Vatica Hotel to GreenTree Alliance Hotel and Shell Hotel, globally, according to its website.
Expansion is the name of the game; just last week the group announced the opening of its third US franchised property and eighth GreenTree Inn hotel in California.
This followed on from statement in October for the first two contracted hotels in Prescott Valley and Mesa, Arizona, which were also in line with a growth strategy set out for 2017 and 2018.
With a view to listing in the US, GreenTree would be following on the heels of a slew of Chinese companies seeking a listing in the US as they ride the market bull run.
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