Huazhu Group Ltd.-owned Huazhu Hotel Management Co. Ltd. signed share transfer agreements with shareholders of Blossom Hill Hotel Investment Management Co. Ltd. to acquire 71.2% of the share capital of Blossom Hill for about 462.9 million Chinese yuan in cash.
The Blossom Hill shareholders involved in the agreement were Beijing Tsingpu Travel Culture Development Co. Ltd. and Suzhou Tiancheng Jiaqi Tourism Industry Investment LLP.
According to the release, the acquisition will combine Blossom Hill's unique positioning with Huazhu's market leadership, geographic coverage, development capability and operational expertise in China.
Upon completion of the deal, Huazhu will own an aggregate of 82.5% shares of Blossom Hill, and Blossom Hill Hotels & Resorts will become part of Huazhu's hotel network.
The Shanghai-based company said the transaction will not have a significant impact on its revenue or profit in 2018.
The transaction is expected to be completed on or around Aug. 31, subject to customary closing conditions.
As of Aug. 14, US$1 was equivalent to 6.88 Chinese yuan.