Home Hotel Connect Jin Jiang Hotels and Plateno Group mull mega-merger

Jin Jiang Hotels and Plateno Group mull mega-merger

Jin Jiang Hotels will make a strategic investment in Plateno Group that will lead to the link-up of the two groups. As turbulence hit the Shanghai Stock Exchange and share prices go into freefall, some Chinese companies are turning to even grander schemes, such as a rumored “mega-merger” of Shanghai Jin Jiang Hotels Group and its competitor Plateno Group.
Jin Jiang Hotels will make a strategic investment in Plateno Group that will lead to the link-up of the two groups’ loyalty schemes, information systems and procurement. However, both hotel groups will continue to operate as independent brands and will not carry out restructuring or rebranding after the formation of their mega-hotel group. Ongoing discussions between the two hotel groups are said to be in the final stages but the announcement will be delayed as the trading of Jin Jiang shares are suspended, according to a reliable source.
The scale of a combined Jin Jiang-Plateno hotel group will be substantial – Plateno is the second largest hotel group in China with over 298,000 rooms, and Jin Jiang is ranked fifth with over 177,000 room, according to the 2014 Top 60 Hotel Groups in China by China Tourist Hotels Association. Combined, they have a total room inventory of 475,000 rooms, or 150% of the top-ranked Homeinns Hotel Group that has 316,000 rooms.
In terms of hotel number, Plateno is top ranked with 3,521 hotels and Jin Jiang Hotels is ranked fifth with 1,334 hotels. The two groups have a total of 4,585 hotels between them, or 1.6 times that of second-ranked Homeinns Hotel Group. It goes without saying that a Jin Jiang-Plateno merger would mean the creation of an undisputed leader in China’s hotel industry.
A merger with Plateno Group would mean almost 6,000 hotels for both groups combined. The two groups will also lead globally in the number of loyalty members with a combined total of almost 100 million loyalty members worldwide – Plateno has 80 million and Jin Jiang has 18 million.