Huazhu Group Limited Announces Acquisition of Blossom Hill Hotels & Resorts
August 15 2018 - 4:00AM
Huazhu Group Limited (NASDAQ:HTHT) (“Huazhu” or the “Company”), a
leading and fast-growing multi-brand hotel group in China, today
announced that its wholly-owned subsidiary Huazhu Hotel Management
Co., Ltd. has entered into share transfer agreements with Beijing
Tsingpu Travel Culture Development Co., Ltd. and Suzhou Tiancheng
Jiaqi Tourism Industry Investment LLP, two shareholders of Blossom
Hill Hotel Investment Management (Kunshan) Co., Ltd. (“Blossom
Hill”), to acquire 71.2% of outstanding shares of Blossom Hill for
a total consideration of approximately RMB462.9 million in cash
(the “Acquisition”). The Acquisition is subject to customary
closing conditions and is expected to be completed on or around
August 31, 2018.
Upon completion of the Acquisition, Huazhu will own an aggregate
of 82.5% of the shares of Blossom Hill, and Blossom Hill Hotels
& Resorts will become part of Huazhu’s hotel network. Huazhu
may continue to acquire some remaining minority shareholders’
shares in Blossom Hill. The companies believe that the Acquisition
will combine Blossom Hill’s unique positioning with Huazhu’s market
leadership, extensive geographic coverage, strong development
capability and operational expertise in China.
“We highly value Blossom Hill’s luxury, boutique hotels &
resorts with aesthetic decor and cultural touch. We see this
acquisition as a win-win combination for both Huazhu and Blossom
Hill: with the addition of Blossom Hill hotels & resorts to our
hotel portfolio, we are able to offer more diversified choices to
our over 100 million HUAZHU Rewards members; at the same time, this
acquisition is also expected to improve Blossom Hill’s occupancy
rate.” commented Ms. Jenny Zhang, Chief Executive Officer of the
Company. “In the future, Huazhu will introduce Blossom Hill’s
uniquely-designed and positioned cultural hotels & resorts into
the urban market and develop the Blossom Hill brand into a leading
brand in China’s cultural hotel and resort segment. By integrating
Blossom Hill with our existing hotel portfolio and providing more
choices for customers, we aim to further strengthen Huazhu’s
presence in China’s upscale hotel and resort segment through this
acquisition.”
Huazhu does not expect this transaction to have any significant
impact on its revenue or profit in 2018.
About Blossom Hill Hotels & Resorts
Blossom Hill is a boutique hotel and resort operator founded in
2009, with its roots in Lijiang, Yunan Province. As of May 31,
2018, Blossom Hill Hotels & Resorts had 21 hotels or 575 rooms
in operation, spanning across 10 tourist cities in China, including
Lijiang, Suzhou, Hangzhou, Ningbo and Shangri-La.
For more information about Blossom Hill Hotels & Resorts,
please visit its website: http://www.blossomhillinn.com/
About Huazhu Group Limited
Huazhu Group Limited is a leading hotel operator and franchisor
in China. As of June 30, 2018, the Company had 3,903 hotels or
393,417 rooms in operation. With a primary focus on economy and
midscale hotel segments, Huazhu’s brands include Hi Inn, HanTing
Hotel, Elan Hotel, HanTing Premium Hotel, JI Hotel, Starway Hotel,
Joya Hotel, Crystal Orange Hotel, Orange Hotel Select, Orange Hotel
and Manxin Hotel. The Company also has the rights as master
franchisee for Mercure, Ibis and Ibis Styles, and co-development
rights for Grand Mercure and Novotel, in Pan-China region.
The Company’s business includes leased and owned, manachised and
franchised models. Under the lease and ownership model, the Company
directly operates hotels typically located on leased or owned
properties. Under the manachise model, the Company manages
manachised hotels through the on-site hotel managers it appoints
and collects fees from franchisees. Under the franchise model, the
Company provides training, reservation and support services to the
franchised hotels and collects fees from franchisees but does not
appoint on-site hotel managers. The Company applies a consistent
standard and platform across all of its hotels. As of June 30,
2018, Huazhu Group operates 22 percent of its hotel rooms under
lease and ownership model, 78 percent under manachise and franchise
models.
For more information, please visit the Company’s website:
http://ir.huazhu.com.
Safe Harbor Statement Under the Private Securities Litigation
Reform Act of 1995: The information in this release contains
forward-looking statements which involve risks and uncertainties.
Such factors and risks include our anticipated growth strategies;
our future results of operations and financial condition; the
economic conditions of China; the regulatory environment in China;
our ability to attract customers and leverage our brand; trends and
competition in the lodging industry; the expected growth of the
lodging market in China; and other factors and risks detailed in
our filings with the Securities and Exchange Commission. Any
statements contained herein that are not statements of historical
fact may be deemed to be forward-looking statements, which may be
identified by terminology such as “may,” “should,” “will,”
“expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,”
“predict,” “potential,” “forecast,” “project,” or “continue,” the
negative of such terms or other comparable terminology. Readers
should not rely on forward-looking statements as predictions of
future events or results.
The Company undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, unless required by applicable law.
Contact Information Investor Relations Tel: 86 (21) 6195 9561
Email: ir@huazhu.com http://ir.huazhu.com
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