PE-led consortiums bid for Shanghai Motel - reports
At least three private equity-linked groups have reportedly entered a bidding war to take control of Morgan Stanley-owned Shanghai Motel Management, Reuters reported, which could fetch $1 billion.
According to Reuters, three hotel chains have partnered with private equity firms as part of a second-round bidding process for Shanghai Motel. Specifically, Nasdaq-listed China Lodging Group is said to have paired with Bain Capital, CDH Investments and General Atlantic to make its bid, the report noted, while NYSE-listed 7 Days Group Holdings and Nasdaq-listed Home Inns & Hotels Management is may link with Carlyle and Warburg Pincus. European hotel group Accor SA was earlier pegged as a suitor, though reports do not confirm whether it will also participate in the bidding round.
AVCJ previously reported that Shanghai Motel, which operates the PRC-based Motel 168 budget chain, offers a PE investor the rare chance to grab market share in China's booming domestic travel industry. The asset's value has been estimated at $1 billion. Global reports further note that Morgan Stanley bought a 20% stake in the company in 2006 for $20 million. That stake has since been boosted to 59%.
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