Shanghai-based Jin Jian Hotels Group shows no signs of slowing down its acquisition strategy, and there is much industry speculation that it has its sights set on acquiring Stamford, Conn.-based Starwood Hotels & Resorts Worldwide, which in April of this year, following a poor financial performance in 2014 and a shakeup of senior management, announced it had retained an investment bank to help it "explore a full range of strategic and financial alternatives to increase shareholder value." According to China Travel News, Jin Jian has invested close to $290 million in a competing China hotel chain, the Shenzhen-based Vienna Hotel Group, taking an 80 percent stake in that company.
The investment is the latest for deep-pocketed Jin Jian, which just weeks ago took steps toward the due-diligence process of merging with Plateno Group, another rival Chinese hotel company. When completed, that merger would expand Jin Jian's portfolio to 4,585 hotels and 475,000 guest rooms, making it the largest hotel group in China. Jin Jian reportedly outbid rival competitors HNA Hospitality Group and developer Sino-Ocean for Vienna, which has close to 500 select-service properties across China.
In March of this year, the company finalized its acquisition of French hotel company Louvre Hotels Group, the second largest hotel group in Europe, from Starwood Capital Group for $1.4 billion.
Rumors abound concerning the possible acquisitions of several hotel groups. Read more about it here