TPG acquires China hotel assets

The hotels, Novotel Beijing Sanyuan and Ibis Beijing Sanyuan, are currently owned by Singapore-based Ascendas Hospitality Trust. They will be held by a joint venture between TPG and China Lodging. The PE firm owns an 80% stake in the JV, with the remainder held by China Lodging, according to a release.

The acquisition is expected to close in the first half of 2018, subject to regulatory approval. Following the transaction China Lodging will renovate and manage the properties.

China Lodging Group, also known as Huazhu Hotels Group, was founded in 2005 and focuses on the economy, mid-range and luxury hotel segments. Prior to its 2010 NASDAQ IPO, it was backed by Chengwei Ventures, IDG Venture Capital, and Northern Light Venture Capital. Its brands include Hi Inn, HanTing Hotel, and Crystal Orange Hotel, which it acquired last year from The Carlyle Group for RMB3.65 billion.

"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, managing partner for TPG 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."

TPG is currently seeking $4-4.5 billion for its seventh pan-Asian fund, which will target buyouts, growth equity, structured transactions and platform builds in China, India, Southeast Asia, Australia, and Korea. Sun, who spent 20 years at Warburg Pincus before departing in 2015 to found agriculture-focused PE firm Black Soil, took over the China team last year.

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• Topics
• Greater China
• Consumer
• Real estate
• Buyouts
• China
• TPG Capital
• M&A