China Lodging Group agrees to buy boutique hotel operator for $531m
China Lodging Holdings, a wholly owned subsidiary of China Lodging Group, has agreed to acquire all of the equity interests of Crystal Orange Hotel Holdings for approximately 3.65 billion yuan ($531 million).
The closing of the transaction is subject to the approval from the Antitrust Bureau of Ministry of Commerce of China.
Founded in 2006, Beijing-based Crystal Orange operates more than 200 hotels, including those under construction, in major Chinese cities. The company’s three brands target middle to high-end consumers, with the flagship Crystal Orange brand termed an alternative five-star hotel, priced at around one-third of international five-star brands such as the Four Seasons.
In 2012, The Carlyle Group acquired 49 percent and effective control of China's Mandarin Hotel Holdings Ltd. for an undisclosed sum. Mandarin Hotel Holdings owns and operates 25 hotels under the Crystal Orange Hotel and Orange Hotel brands.
Hotel operator acquisitions in