On the 14th of October BTG Hotels revealed their General Asset Restructuring Plan. The first step of the proposal would be for them to make an acquisition of a 70% share of Ningbo Nanyuan Group Co Ltd. Then BTG Hotels will make a cash sale of the 51% stake they hold in BTG International Travel and Tours to another BTG subsidiary Hualong Tourism.
BTG international Travel and Tour’s had 818 million RMB in reported revenue in the first half of the year, a 13.44% decrease compared with the same period last year. They had a net loss of 3.06 million RMB which is a 32.57% increase in loss compared with the same period last year. In 2014 their end-of-quarter total assets were 255 million RMB with net assets of 66.12 million RMB making their asset-liability ratio 74.07%.
Ningbo Nanyuan Group Co Ltd is one of “China’s top 500 Service Companies” for industrial investment. Its core operations are in the hotel operation and food production. They have high-end business hotels such as the first five-star hotel in Zhejiang Province the Nanyuan Hotel and the platinum five-star Ningbo Nanyuan Global Hotel.
BTG Hotels is currently negotiating the acquisition of Ningbo Nanyuan Group and coordinating the development of their own high to low end hotel brands. They plan to have 200 hotels by the end of 2015. As a major domestic investor in the hotel industry BTG Hotel’s operations have been concentrated in the north with this acquisition there will be a shift in the company’s direction towards development in Southern China.(Translation by David)
