China Vanke Co. Ltd. formed a joint venture with Banyan Tree Holdings Ltd. that aims to consolidate the ownership of Banyan Tree-branded hotels and assets in China.

Banyan Tree China will have estimated initial paid-up capital worth not more than approximately 2.00 billion Chinese yuan. It will also develop and manage new hospitality, senior living and wellness projects.

China Vanke may inject its hotel properties and future projects into the joint venture, while Banyan Tree will place its entire Chinese hotel portfolio in the vehicle to make it a 50/50 partnership between the two companies. Banyan Tree's China assets have a pre-valuation total book value of around 720 million yuan.

The joint venture will invite owners of more than 15 existing hotels and over 20 properties under development with the Banyan Tree brand to also inject those assets into Banyan Tree China.

It will further expand the company's various brands in the mainland, comprising Banyan Tree, Angsana, Cassia, Dhawa and Laguna, and will own 40% of Banyan Tree's hotel management company in the country.

China Vanke will also subscribe for an approximately 5% equity stake in Banyan Tree, following AccorHotels' investment in the hospitality company through a deal for the development and management of Banyan Tree-branded hotels worldwide.

As of Jan. 23, US$1 was equivalent to 6.86 Chinese yuan.