China's energy giant Sinopec Group plans to spin off its hotel business as part of a widespread effort to curb corruption that will also see the company sell off other assets, including its fleet of 4,000 cars.
Sinopec Group controls Asia’s largest oil refiner but also owns and operates a number of hotels in China. As it focuses on its core business, the company is looking to divest itself of its hotels by the end of 2017, holding only to “a small number” that are either very competitive or have no competition in the area. The state-owned company did not disclose exactly how many hotels it holds now or how many it will sell.
President Xi Jinping has launched a series of large-scale anti-corruption campaigns in China since he was appointed in 2013. Sinopec has been a focus of a number of probes. A handful high-ranking executives or former executives of Sinopec have either been jailed or are under investigation. In a statement released by the country’s anti-corruption watchdog, Sinopec said that the latest series of investigatioins had been effective at rooting out problems.
“It has hit the nail on the head, grasping the essence and crux [of the issue], helping us to find the root of the disease,” the company said.