Louvre Hotels Group Shifts Gears To A Higher Level After Acquisition By Jin Jiang International Holdings
Louvre Hotels Group (LHG), which operates “Golden Tulip hotels” in South East Asia and was fully acquired in March 2015 by Shanghai-based Jin Jang Holdings International, is now ready to shift gears with strong expansion plans.
Jin Jiang – one of China’s leading travel and tourism conglomerates – is a state-run company with a strategy based on China’s Five-Year Plan that identifies tourism as a core growth engine thus a priority for investments. It is a great opportunity for Louvre Hotels Group to benefit from this 5-year roadmap, enabling continuous investment to accelerate development in France, Europe, Asia and the rest of the world. The new ownership also gives LHG access to the largest outbound touristic market of which 30% is managed by Jin Jiang Tour Operator.
LHG and Jin Jiang share the same passion for the hotel industry. Prior to the acquisition of Louvre hotels Group by Jin Jiang in March 2015, the two companies had been partnering for 4 years with a distribution agreement.
Boosting expansion with a EUR2.5 billion line of credit
The development is now receiving a strong boost. Strengthened by the €2.5b line of credit granted by Chinese bank ICBC over a 3-year term, a substantial enough budget is available to shift gears and accelerate the development strategy of the Group through organic development, innovations, renovation of existing hotels, or external growth.
Accelerating brands’ development into the Chinese market
With the Chinese shareholder’s backing, the brands are able to penetrate a market with high entry barriers. Louvre Hotels Group will launch Campanile economy hotels in China, with first opening in Shanghai at the end of 2015. The objective is 500 hotels in the next 5 years.
Further development is planned for the Golden Tulip brand: among the first, the conversion of a flagship JJ hotel in Shanghai.
Strengthening presence in Thailand , Indonesia and South East Asia
In Thailand the group currently has 5 Golden Tulip and Royal Tulip Hotels in operation and development. There are currently advanced plans for the launch and a roll out of a group of 30 Tulip Inn economy hotels, economy hotels throughout the Kingdom, in the main and secondary cities around the country.
Furthermore there are aggressive plans for further expansion for the 5 and 4 star hotels and resorts in the main destinations Bangkok, Phuket and Pattaya.
In addition there is an interest for strategic investments in the hotel sector through portfolio acquisitions.
The portfolio in Thailand is managed under a partnership with BHM Asia out of Bangkok.