China Lodging Group has formed a joint venture with TPG Capital Asia.
China Lodging Group owns 20 percent while TPG owns 80 percent.
The joint venture has entered into a share purchase agreement to acquire 100 percent equity interest in two hotel properties in Beijing — Novotel Beijing Sanyuan and Ibis Beijing Sanyuan for $235.9 million from Ascendas Hospitality Trust.
The transaction is expected to close in the first half of 2018.
“As our first foray into China’s commercial property investment market, we are very excited to be working together with a well-respected investment and operation partner like China Lodging Group,” said Chang Sun, TPG’s managing partner in China. “TPG has a history of investing across a wide range of asset classes, and we are committed to finding more diverse ways to generate value for our investors.”
Post-closing, the joint venture will renovate the hotels and Huazhu will continue to serve as operator. Hi
