GreenTree Hospitality Group, a Chinese franchised and managed hotel chain listed on NYSE, announced that it has entered into an agreement to acquire majority stake in Argyle Hotel Management Group (Australia), an owner and operator of hotels in China and South East Asia.
Argyle founder and CEO Mr. Kevin Zhang and his management team will remain one of the largest shareholders of Argyle, and become an integral part of GreenTree's management team. This transaction is subject to customary closing conditions and is expected to be completed on or around March 31, 2019.
Argyle hotel network consists of eight mid-scale and upscale brands, including Argyle Grand Hotel, Argyle Boutique Hotel, Argyle Resort, Argyle Hotel, Ausotel and Ausotel Smart, Argyle Suite, Bondi Shack and Argyle Academy, ranging from stylish business hotels to five-star luxury hotels, all showcasing Australian life style lifestyles. The majority of these properties are located in South West China. Strategically, Argyle's highly distinguished brand portfolio and geographic coverage are highly complementary to GreenTree's business and expansion plans.
Mr. Kevin Zhang commented: "Alex and I see immediate and long-term benefits from this collaboration. GreenTree's proven market leadership, superior technology, strong membership program and powerful development experience will augment Argyle's efforts. This will help us become a world class luxury to mid-scale lifestyle hotel brand sector in China and South East Asia and bring ultimate value to our property owners, our people and our guests."
"We are very excited about this strategic investment," said Mr. Alex Xu, Chairman and CEO of GreenTree. "Argyle's established footprint in China and Southeast Asia is complementary to our chain, and its mid and upscale brands, with their strong Australian style, will become more popular in China."
As of September 30, 2018, GreenTree had 2,558 hotels, among which 2,528 are franchised and managed hotels. The Argyle Hotel Management Group (Australia) is a leading hotel management group manages over 100 hotels and resorts across the Asia Pacific.