Shanghai-based Jin Jiang International has entered into an agreement to purchase the majority stake in Radisson Hospitality AB from HNA Tourism prior to a full acquisition later this year.
In a series of transactions involving a number of parties, shareholders and subsidiaries, Jin Jiang will ultimately acquire all outstanding Radisson Holdings shares listed on the hotel group’s home Nasdaq Stockholm market for an undisclosed sum, subject to regulatory approval. Following the share purchase, Jin Jiang will continue to purchase Radisson Holdings Inc as a whole. The transaction is expected to close in full before the end of 2018.
The move comes as HNA Tourism – which purchased Carlson Hotels Inc in 2016 and recently rebranded the group to Radisson Hotel Group – embarks on a significant debt reduction exercise. HNA Tourism also owns a minority share in airline Virgin Australia. The agreed price for the initial stake was around 3 billion Swedish Krona (AU$452 million).
Radisson Hospitality AB operates eight hotel brands around the world – Radisson, Radisson Blu, Radisson Red, the Radisson Collection, Park Inn by Radisson, Park Plaza, Country Inn & Suites and prizotel – as well as the Radisson Rewards loyalty program. At the time of writing, the global Radisson portfolio consists of 486 hotels across 78 countries and more than 107,000 rooms either in operation or in the pipeline.
Jin Jiang International is a Chinese state-owned capital and investment firm focusing on tourism, hotel and hospitality brands. It currently holds and manages over US$6.1 billion in assets.