Jin Jiang expands its tourism sector footprint

Shanghai Jin Jiang International Hotels (2006.HK) is building up its presence in the tourism sector through the purchase of assets worth nearly US$400 million from its state-owned parent, the South China Morning Post reported. The company is taking a 38.54% stake in Jin Jiang Investment, which operates passenger transport and logistics services, for US$294 million, and a 50.21% stake in travel agency operator Jin Jiang Travel for US$90 million. The listed unit will pay for the assets by issuing new shares to its parent. Jin Jiang, proprietor of the recently restored Fairmont Peace Hotel in Shanghai, also owns about 550 star-rated and budget hotels around the country. The company said its net profit will be “significantly increased” as a result of the new purchases, which will enable it to form a vertically integrated tourism industry chain.