Jin Jiang International to boost stake in Europe’s Accor

Jin Jiang International, which controls China’s largest lodging company by market value, is considering increasing its stake in French hotelier Accor, say sources.

Jin Jiang, already Accor’s biggest shareholder with an almost 12% stake, could build up its ownership in the Paris-based company to about 20%.

The Shanghai-based firm would be interested in gaining more influence over Accor’s management. Accor shares jumped as much as 3.8% in Paris trading, the most for about a month.

An additional 8% stake would be worth about €719m at Accor’s current share price. Accor has hired advisers to guide managers on how to proceed, the sources said.

“Jin Jiang is one of the fastest-growing Chinese companies in the hotel industry, and they’ve been looking to invest more outside of China,” said Wouter Geerts, a lodging analyst at Euromonitor International in London. “Now that more Chinese travellers are taking international trips, it’s important for Jin Jiang to benefit from that.”

Both firms have been part of the recent wave of consolidation in the industry.

Jin Jiang, which owns Shanghai’s prestigious Peace Hotel, has been building its stake in Accor in a bid to expand its global franchise after it bought Groupe du Louvre in 2014.

Accor, Europe’s biggest hotel operator, said last week it agreed to buy Onefinestay for €148m to expand its luxury serviced-home presence.

* Bloomberg


Lifestyle

Frits Potgieter is General Manager with Muckross Park Hotel and Spa.You've Been Served: Frits Potgieter, Muckross Park Hotel and Spa

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