Chinese hospitality behemoth Jin Jiang International has acquired Starwood Capital’s Louvre Hotels for a reported €1.3 billion.
This news is significant given that Louvre Hotels Group is the second-largest hospitality group in Europe, with a network of some 1,100 hotels in over 40 countries worldwide.
Louvre and its parent Groupe du Louvre are being taken over by the Luxembourg-based subsidiary unit Shanghai Jin Jiang International Hotels Development, of which Jin Jiang International is the largest shareholder.
The acquisition could prove important for travellers as it opens up the opportunity for Jin Jiang to bring the Louvre brand over the Asia, while the opposite also hold true. In addition, this is expected to boost tourism between France and China, and help drive the development of selected brands for both parties.
Shanghai Jin Jiang International Hotels Development has plenty of experience in the industry, with the unit owning and operating 1,215 economy and mid-scale hotels in Asia.
“The sale of Groupe du Louvre to our valued partners at Jin Jiang completes a remarkable performance by our investment vehicle in France,” said Starwood chief executive Barry Sternlicht. “Under the leadership of Steven Goldman, chief executive of Groupe du Louvre since 2010, we provided a strong return to our investors from the assets despite operating in a challenging economic environment.”