HNA agrees to sell RADISSON HOTEL GROUP to JIN JIANG for reported $2b

Two years after acquiring the Minnesota-based hotel group now known as Radisson Hospitality, Hainan-based conglomerate HNA has agreed to sell off its interest in the 1,400 venue hotel chain to a consortium led by Shanghai-based Jin Jiang International Holdings, according to a statement by Radisson late Thursday.

The state-run Chinese hotel group and its unnamed co-investors are reported to be paying $2 billion for the group in a multi-part transaction which begins with the consortium acquiring just over 51.15 percent of the outstanding shares of Stockholm-listed Radisson Hospitality AB at 35 Swedish krona ($3.89) per share, for a total of about $332 billion for the stake.

With the transaction, HNA is giving up the last vestige of what once looked to be a world-leading hospitality empire after the airline-based group, starting in 2016, spent nearly $9 billion to acquire stakes in Hilton Hotels, Spain’s NH Hotels and Radisson’s predecessor Carlson Rezidor Hotels. Since the first of this year, HNA has now sold off NH Hotels, Radisson, and most of its Hilton holdings.

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Selling Radisson at a Discount

In addition to buying the 51 percent stake in Radisson, the Jin Jiang group has agreed to buy an additional 18.5 percent stake in the company which is held by HNA Sweden, and has been pledged as security for a loan, according to the terms of the deal. Jin Jiang’s purchase price represents a five percent discount to the company’s share price at the close of trading on Thursday.

Under Swedish law, following the share purchase, which is expected to close by the end of this year, Jin Jiang is required to make a general offer for all outstanding Radisson shares.

The acquisition would give Jin Jiang control over the Radisson group’s brands, including Radisson, Radisson Blu, Radisson Red, Park Inn and Country Inn & Suites, adding to the more than 6,700 hotels owned or managed by Jin Jiang in China and other locations globally.

HNA is understood to have paid around $2 billion to acquire its holdings in then Carlson Rezidor in 2016.

HNA Continues to Sell Off Hotel Assets
HNA’s sale of Radisson is part of a high-velocity asset sale that the group has been conducting this year in an effort to pay down debts that have been estimated at as much as $100 billion.

Ref : Property Report