China Post is planning to sell all of its hotels in China as a part of a reorganization in aligning its business.

China Post owns several hundred hotels all over the country, ranging from two-star to five-star, but most of these hotels have faced mounting losses in recent years. China Post says it will receive about RMB10 billion by selling these hotels.

Because most of China Post's hotels are below the 3-star level and spread around China, this should be a good opportunity for budget hotel chains to purchase decent properties.

However, there are still several disadvantages for many of these hotels. Most of them relied too much in the past on China Post and therefore lack independence in making management decisions, and much of the facilities at the hotels need to be upgraded.

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