Jin Jiang, Thayer, Interstate Ink Agreement In Shanghai

Jin Jiang Hotels, Thayer Lodging, and Interstate Hotels & Resorts recently held a signing ceremony in Shanghai to mark a strategic cooperation agreement among the three parties.

The transaction involves Thayer Lodging and Jin Jiang Hotels acquiring Interstate, and this is reported to be the largest international acquisition transaction in China's hotel industry, involving a total consideration of about USD300 million.

Leland Pillsbury, Thayer's co-chairman and CEO, commented that the collaboration will provide opportunities for Interstate to enter the China market, while Thayer can bring into full play in China the substantial experience the company has accumulated from years of international hotel asset management. Jin Jiang Hotels' management standards and its international standing will be further enhanced.

Jin Jiang Hotels has formulated a series of strategic initiatives with the other two partners, including an agreement with Interstate for setting up a hotel management joint venture and instilling Chinese elements into the JV to help it develop an independent hotel management business in China; an agreement with Thayer for the establishment of an asset management company to improve asset enhancement ability and boost asset liquidity; and a memorandum of understanding with Thayer on setting up a Chinese hotel and tourism sector investment fund with a view to creating new growth drivers.

Jin Jiang Hotels and Thayer had previously set up the joint venture Hubs1 in October 2005. This is China's only fully automated high technology global distribution system, which serves as the "2010 World Expo Official Reservation Service Provider".