Louvre shifts into expansion gear

JAKARTA  Louvre Hotels Group that operates Golden Tulip hotels in Southeast Asia, announced expansion plans, Wednesday, fuelled by investment funds from new owner Jin Jang Holdings.
The hotel group was fully acquired by Shanghai-based Jin Jang Holdings International, last March.
Jin Jiang – one of China’s leading travel and tourism conglomerates – is a state-run company with a strategy based on China’s Five-Year Plan that identifies tourism as a core growth engine thus a priority for overseas investments.
“We are very excited by the acquisition of our group by Jin Jang as we see the opportunity in Asia to expand aggressively and to capitalise on the synergy with our new shareholders,” commented Louvre Hotels Group managing director Southeast Asia, Mark van Ogtrop.
Using Louvre Hotels Group as a platform the Chinese group will boost its investments to accelerate hotel developments mainly in Europe and Asia.
inside no 9The new ownership also gives LHG access to China’s outbound touristic market of which 30% is managed by tour operators owned by Jin Jiang.
Prior to the acquisition of Louvre Hotels Group by Jin Jiang last March, the two companies engaged in a four-year partnership through a distribution agreement.
The group is now posed to expanded based on a €2.5b line of credit granted by Chinese bank ICBC over three years
It signals a shift of gears that will accelerate expansion including renovation of existing hotels and acquisitions to add to the Golden Tulip brands.
Through the Chinese shareholder’s backing, the group will have the financial muscle to penetrate the China market. LHG said it would launch Campanile economy hotels in China, with the first opening in Shanghai at the end of 2015. The objective is to achieve 500 hotels in the next five years.
Further development are planned for the Golden Tulip brand, among them the conversion of a flagship JJ Hotel in Shanghai to a Golden Tulip brand.
inside no 9.1In addition, it will strengthen its presence in Thailand, Indonesia and Southeast Asia.
In Thailand the group currently has five Golden Tulip and Royal Tulip Hotels either open or under development.
There are currently advanced plans to roll out 30 Tulip Inn economy hotels, economy hotels throughout the Kingdom, in the main and secondary cities around the country.
The group’s five and four-star brands will grow in major destinations such as Bangkok, Phuket and Pattaya.
The portfolio in Thailand is managed under a partnership with BHM Asia out of Bangkok.
Louvre Hotels Group currently operates eight hotels in Indonesia, in Bali, Kalimantan, Java. In the next six months there are an additional 10 hotels scheduled to open, a mix of Royal Tulip, Golden Tulip , Kyriad and X2 brands
The total portfolio of Louvre Hotels Group in Indonesia will reach over 28 hotels by the end of 2016.

sourced:ttrweekly.com