According to a statement from hotel group Hilton, Chinese multinational conglomerate HNA have acquired a 25% stake in the company in a deal thought to be worth around $7 billion.
The purchase continues the trend of Chinese firms investing in tourism-orientated operations abroad, which many analysts see as a shrewd move amid a surge in Chinese tourism.
HNA’s chief executive Adam Tan has been keen to push the company forward and make it a worldwide tourism business for years and the latest move has satisfied part of that vision.
Only a few months ago the company announced it had signed a deal to takeover Carlson Hotels, which runs the Park Plaza and Radisson brands.
This is all a far cry from HNA’s early days in the early 90’s when it started out as a regional airline, but it moved quickly into a sprawling and diverse business involved in tourism, real estate, financial services and logistics employing over 250,000 people over three continents.
“HNA now have over two thousand hotels, 1300 aircraft and are rated as one of China’s biggest tourism firms,” said a senior spokesperson at CITIC Tokyo International in an email to investors. “The big plus for Hilton is how much extra Chinese business they are going to be getting into their hotels now.”
Hilton chief executive Christopher J Nassetta said in a statement, “This is absolutely the right move for the company at this point in time and it is going to give us more freedom and opportunity to improve and diversify our brand hotels. HNA have a hugely impressive position in the Chinese tourism industry and we are really excited to be working with them in the near future.”
Hilton has over 4500 managed and franchised premises in over a hundred countries under famous brand names such as Double Tree, Conrad Hotels and Curio. The terms of the agreement stipulate that HNA are not allowed to reduce or increase their 25% stake without the permission of the Hilton board of directors.
