|This Slide: #36 of 87|
Slide #36. China Lodging Group, Limited — Quanjude
China Lodging Group, Limited (NASDAQ:HTHT)
China Lodging Group, Limited (Nasdaq:HTHT) ("China Lodging Group" or the "Company"), a leading and fast-growing multi-brand hotel group in China, today announced that the Company, through one of its subsidiaries, entered into a purchase agreement ("Agreement") to acquire ordinary shares of China Quanjude (Group) Co., Ltd. ("Quanjude", SHE:002186) through a private placement of RMB100 million (approximately US$16.3 million), effective upon meeting certain closing conditions. The purchase price is set at RMB14.03 per ordinary share, calculated as not less than 90% of the average of daily trading price for Quanjude's ordinary shares on Shenzhen Stock Exchange within 20 trading days preceding the Agreement date. The transaction is expected to close within the next six months. The placement will be of a total size of RMB350 million, with the remaining purchased by IDG Capital Management (HK) Limited. Post the transaction, China Lodging Group and IDG Capital will hold 2.3% and 5.8% of Quanjude, respectively.
Huazhu Group is a multi-brand hotel group in China with leased, manachised and franchised models. Under the lease model, Co. directly operates hotels typically located on leased properties. Under the manachise model, Co. manages manachised hotels through the on-site hotel managers Co. appoints and collects fees from franchisees. Under the franchise model, Co. provides training, reservation and support services to the franchised hotels and collect fees from franchisees but do not appoint on-site hotel managers. As of Dec 31 2016, Co. has 624 leased, 2,471 manachised and 174 franchised hotels in operation and 15 leased hotels and 427 manachised and franchised hotels under development.
Open the HTHT Page at The Online Investor »
Hold (2.26 out of 4)
(ranked lower than approx. 92% of all stocks covered)
Based on Zacks ABR data;
powered by Xignite