JD.com, China’s second largest e-commerce company, has closed a deal to buy the Jade Palace Hotel in Beijing for US$400 million, with the goal of transforming the five-star property into a new innovation and recruitment centre.
The Nasdaq-listed company said on Monday that it acquired 100 per cent ownership of the hotel, which is located near the Chinese capital’s Zhongguancun technology hub.
“The purchase of the hotel will serve JD.com’s long-term development,” a company spokesman said. “The hotel will be transformed into a space mainly for technology innovation and commercial business.”
That investment has come several weeks after JD.com announced a restructuring of its main shopping site and the creation of an office of the chief executive to better serve its customer-centric strategy.
The overhaul will divide JD Mall, the company’s main revenue driver, into three segments: a unit responsible for understanding customer behaviour and market changes, another to provide services to satisfy customer demands, and a third to handle infrastructure-building, service support and risk management, according to company documents provided to media in December.
The Jade Palace Hotel, which started operation in 1998, posted a net loss of 47 million yuan for the nine months from January to September 2018.
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