As China’s cash-strapped HNA Group considers a sale, another Chinese giant thinks about buying.
As cash-strapped Hainan-based HNA Group continues to consider selling Radisson Hotel Group, the news agency Bloomberg reports that China’s state-owned Jinjiang International is thinking about a bid for the Minneapolis-based hotel company.
HNA Tourism Group bought Carlson Hotels, comprising brands such as Radisson Blu, Park Plaza and Country Inns & Suites, for an undisclosed sum in 2016, before the hotel giant’s recent rebrand into Radisson Hotel Group.
The debt-ridden Chinese conglomerate has been dumping assets around the world and its divestments snowballed into billions this year.
Bloomberg, quoting unnamed sources, said HNA could get at least US$2 billion from the Radisson sale, which is expected to attract other bidders.
Discussing HNA’s financial troubles in a recent interview with TTG Asia, Katerina Giannouka, Radisson Hotel Group’s head of Asia-Pacific, stressed that Radisson was self-financed and pursuing a five-year plan independent of any of the owning company’s contributions.
For potential bidder Jinjiang, overseas expansion has been high on the agenda, TTG Asia says. It has been described by the CEO of Louvre Hotels Group, a company it acquired in recent years, as a “strategic, long-term player [that] does not want to exit”.
Shanghai-based Jinjiang also owns 12.3% of France’s AccorHotels.