The China Youth Travel Service Company (CYTS) says it will invest RMB96 million to reconsolidate the Shenzhen Shanshui Hotel Investment Management Company and rename it as the CYTS Shanshui Hotel Investment Management Company.

The new company will base itself within the budget hotel sector of the South China region and then gradually expand to Beijing and Shanghai markets.

The registered capital of the company is temporarily set to be RMB100 million, of which CYTS holds 51% of stake and the original shareholders 49%.

Shenzhen Shanshui Hotel Investment Management Company currently manages three chain hotels in Shenzhen.