CHINESE conglomerate HNA Group and Spanish hotel chain NH Hoteles are taking a second stab at collaboration, with details of the tie-up to be revealed in September.
HNA has secured a 20 per cent stake in NH worth 234.3 million euros (US$306.1 million) and at least two of HNA’s directors will join the NH board.
The announcement on the terms of investment comes nearly two years after a failed initial attempt at collaboration in 2011 (TTG Asia e-Daily, October 31, 2011). The deal was dropped because of the volatility of NH shares on the stock market at the time.
A spokesman for NH, which specialises in budget-minded business travellers and operates close to 400 hotels in 26 countries, said part of the deal will see NH managing HNA hotels outside of China, as well as developing and running hotels in China under its brand name.
The Spanish company will also enjoy preferential treatment from HNA travel agencies sending clients overseas.
He explained: “The priority up to now has been to reach an agreement on the investment.
“Other parts of the agreement will probably be revealed in September, given that NH is working on a five-year plan in which it will be incorporated.”
HNA Group’s travel-related subsidiaries include Hainan Airlines and 13 airports, in addition to a tourism holding that includes Lucky Way International Travel Agency, a hotel chain operating 70 properties in China, and car rental and convention services.
