SHANGHAI—GreenTree Hospitality Group Ltd. has subscribed shares in Zhejiang New Century Hotel Management Co. Ltd. in its global offering (IPO) for a total amount of $29.2 million. Upon the completion of the IPO, GreenTree will own 4.95% of outstanding shares in New Century Hotel Management.
New Century Hotel Management operates and manages midscale to upscale hotel chains in the Peoples Republic of China. As at Dec. 31, 2018, New Century Hotel Management operated and/or managed 150 hotels with more than 34,000 hotel rooms in 22 provinces, municipalities and autonomous regions. New Century Hotel Management ranks third in China and has the highest market share among domestic hotel group in terms of the operating and contracted upscale hotel rooms. It consists of a wide range of brands, with strong brand recognition among the industry and hotel guests, and an extensive loyalty program that could complement GreenTree.
This investment is expected to benefit both GreenTree and New Century Hotel Management as there will be potential collaboration opportunities between the two companies in the midscale to upscale hotel segment to create value for customers, franchisees, and shareholders.