HK CTS Hotels, a wholly owned subsidiary of China National Travel Service Group Corporation, has acquired the Kew Green Hotels Ltd. The portfolio is comprised of 44 owned assets totaling some 5,179 rooms as well as its managed hotels business of 10 hotels. The sale represents the largest Chinese hotel transaction in the UK to date.
Kew Green, founded in 2001, has 54 hotels in the UK, more than 40 of which are operated under the Holiday or Holiday Inn Express brands; making it the brand’s largest franchisee in Europe. With operations including the five-star Grand in Brighton, five Ramada hotels, a Crowne Plaza at Liverpool’s John Lennon airport, and a Courtyard by Marriott at Gatwick airport, as well as managing a further 10 UK hotels for other owners.
Kew Green has been owned by Goldman Sachs' and TPG Special Situations Partners since 2013. Before that Kew Green underwent a debt-for-equity swap that handed the control of the company to Barclays and Lloyds Banking Group in 2011.
Jeremy XU Muhan, Chairman of HK CTS Metropark Hotels comments: “The purchase of Kew Green is a tremendous acquisition that provides us with a strategic growth platform within the UK and Europe. Investing overseas is one of the key strategies for HKCTS to expand its tourism business particularly as there are increasing outbound Chinese travellers to the UK and European markets. We received great support and professional service from our advisers including Christie + Co and we are committed to expansion in the UK and other parts of Europe and as further opportunities arise we will consider them.”
Paul Johnson, Chief Executive Officer of Kew Green added „We are delighted that HK CTS Metropark Hotels has chosen to invest in Kew Green. Their support will allow us to continue our aggressive growth strategy as well as giving us access into the rapidly growing Chinese tourist market.“
