GreenTree Hospitality Group, a Chinese franchised and managed hotel chain listed on the New York Stock Exchange, announced that it has subscribed shares in Zhejiang New Century Hotel Management's initial public offering, for a total amount of USD 29.2 million.
Upon the completion of the IPO, GreenTree will own 4.95% of outstanding shares in New Century Hotel Management.
New Century Hotel Management is a mid-scale to upscale hotel operation and management company in mainland China. It operates and manages mid-scale to upscale hotel chains in China. As of December 31, 2018, New Century Hotel Management operated and/or managed 150 hotels with over 34,000 hotel rooms in 22 provinces and regions.
New Century Hotel Management ranks third in China and has the highest market share among domestic hotel group in terms of the operating and contracted upscale hotel rooms.
In the announcement, GreenTree said that "there will be potential collaboration opportunities between the two companies" in the mid-scale to upscale hotel segment.
In addition, Ctrip is also subscribing for USD 32 million worth of shares in New Century Hotel Management as a cornerstone investor.