CHINA-based HNA Group has decided to take a 20 per cent stake in the Spanish hotel chain NH Hoteles, worth 431.6 million euros (US$615 million).
The deal, approved by the NH board on Monday and expected to be ratified by Chinese authorities before July 16, will involve an expansion of capital that will make HNA its second biggest shareholder, as well as pave the way for setting up a hotel management company in China.
Based in Haikou and best known in the travel sector for owning Hainan Airlines, HNA had a reported turnover of more than seven billion euros last year. Its subsidiaries include the Lucky Way International Travel Agency and the airport owner and operator Haikou Meilan International Airport Company.
HNA will be putting some of its existing China hotels into this new management package, according to the Spanish group. At the same time, NH will be offered favoured status with HNA when sending customers to Europe.
NH said the deal with HNA would enable it to diversify its business by taking “a relevant position in the four-star hotel sector” in China.
NH’s largest shareholder will remain Jose Antonio Castro, who is also the owner of another Spanish chain, Hesperia Hotels. Other shareholders include Amancio Ortega, founder of the Inditex textiles group, best known for its Zara clothing line.
