Report: Asia's Plateno and Jin Jiang to form super group

If these two become one, it's going to be major. A report from Australia's MICE BTN says that Chinese hotel groups Plateno Group and Jin Jiang Hotels are reportedly set to merge, but maintain independent operations.

Further, there is rumor that the combined group could attempt to acquire Starwood Hotels & Resorts Worldwide, or another U.S. hotel company. The merger would create the largest hotel group in China with a total of 475,000 rooms, comprising Plateno’s 298,000 rooms and Jin Jiang 177,000 rooms.

In January, Jin Jiang's deal to acquire France’s Louvre Hotels Group from Starwood Capital Group closed.

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Hotel Management first reported the proposed deal back in November, citing a Wall Street Journal article.

The deal is now valued between €1.25 billion and €1.5 billion; however, Shanghai's Jin Jiang said the actual consideration of the deal will be in a range of €960 million to €1.21 billion, with plans to fund the purchase via internal resources and bank loans.

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