[photopress:peacehotel.jpg,full,alignright]The Peace Hotel, a landmark of Shanghai, is in for a major refurbishment. Shanghai-based Jin Jiang International Hotels will spend $63.6 million gained from its listing in Hong Kong to refurbish some luxury hotel assets in Shanghai.
Jin Jiang Hotel Group started its initial public offering in Hong Kong yesterday and accoring to the listing plan the group will issue 1.1 billion shares aiming to raise a maximum of $311 million. Trading of the group’s shares will start December 15.
China mainland’s largest hotel group will spend about one-fifth of its listing proceeds to renovate three luxury hotels in Shanghai; with special attention to the five-star Peace Hotel.
Once improved room prices at the Peace will go up perhaps by up to three times.
The two other hotels are the Cypress Hotel and Jin Jiang Tower.
Jin Jiang Hotel group also plans to sell the unprofitable three-star Jiulong Hotel. Forty-five percent of the hotel’s shares will be sold this year and the remaining 55 percent will be sold next year.
More than half of the proceeds from the IPO will be used to expand Jin Jiang’s budget hotel asset Jin Jiang Inn, the largest economy hotel chain in the mainland. With 110 budget hotels in operation, Jin Jiang Inn will add 180 more by the end of this year, and aims to open 600 new branches by 2010.
Source: Shanghai Daily
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