Massive Chinese hotel group aims at Starwood

Groups Jin Jiang and Plateno working to create merger
Two Chinese hotel giants are working on a merger that would create a massive global powerhouse, which would then try to buy what is currently one of the world’s biggest hotel groups – Starwood Hotels & Resorts Worldwide.
The two companies, Shanghai Jin Jiang International Hotel Group and Plateno Hotel Group, are in discussions for the merger, in which Jin Jiang would buy 80% of Plateno’s shares. The two groups would continue to operate independently.
The merger would result in a Chinese group with a total of 450,000 rooms. It would be a first step in the formation of the first Chinese-owned global hotel giant.
Jin Jiang has done business with Starwood before, its Luxembourg-based subsidiary buying Groupe du Louvre from Starwood affiliate Star SDL Investment Company for €1.3 billion last November.
For its part, Starwood says it wants to “explore a full range of strategic and financial alternatives to increase shareholder value,” adding that “no option is off the table”. It currently operates around 350,000 hotel rooms.
Hotel Management / Jiemian News