China Lodging to acquire PE-backed Crystal Orange Hotel

China Lodging will acquire Crystal Orange through its Hong Kong subsidiary, giving it ownership of 100 hotels located in tier one and tier two cities across China, including Beijing, Shanghai, Hangzhou and Nanjing, according to a statement.

Founded in 2006, Beijing-headquartered Crystal Orange has several brands targeting different segments of the market. For example, Crystal Orange Hotel for mid to high-end business and leisure travelers, while Orange Hotel offers affordable solutions. Carlyle acquired a controlling stake of 49% in parent company Mandarin Hotel Holdings in June 2012 via Carlyle Asia Partners III, a $2.55 billion buyout fund that closed in 2010.

Established in 2005, China Lodging Group, also known as Huazhu Hotels Group, is a hotel operator and franchisor, primarily focusing on the budget and mid-scale segments. Its brands include Hi Inn, HanTing Hotel, Elan Hotel, JI Hotel, Starway Hotel, Joya Hotel, and Manxin Hotels & Resorts. It is also the master franchisee for international brands such as Mercure, Ibis and Ibis Styles, and has co-development rights for Grand Mercure and Novotel in China.

As of the end of last year, China Lodging had 3,269 hotels in operation in 367 Chinese cities. Its revenue grew 16% year-on-year to RMB5.77 billion in 2015, while net profit jumped 42% to RMB436.6 million during the same period.

The acquisition of Crystal Orange is subject to ransaction is subject to the approval from China's competition regulator and the country's Ministry of Commerce.

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• Topics
• Greater China
• Trade sale
• Consumer
• Real estate
• China
• The Carlyle Group
• M&A
• Exit