Global buyout firm Carlyle has bought a controlling stake of 49 per cent in Chinese designer hotel operator Mandarin Hotel Holdings, in a bid to tap burgeoning middle class and domestic consumption in the world’s second largest economy.
Carlyle Asia Partners III bought the stake and has subsequently become the largest shareholder in the business. Although financial terms of the deal were not disclosed, the fund typically invests amounts of more than $75m.
Mandarin was founded in 2006 and operates 25 mid-market designer hotels under the brands of ‘Crystal Orange Hotel’ and ‘Orange Hotel’, which can be found in six cities in China including Beijing, Tianjin, Dalian, Nanjing, Hangzhou and Ningbo.
Carlyle managing director Eric Zhang, who will become the company’s co-chairman, said the firm “… will support the company’s continuous improvement, maximise its full potential and take it to the next level of market penetration and customer satisfaction.”
Carlyle has invested around $4bn to date in more than 60 deals in China.
The firm already has expertise in the Chinese hotel sector through its investment in New Century Hotel Group, which runs a chain of 70 hotels in cities across the country, with flagship hotels in prime locations such as Beijing, Shanghai and Chengdu.
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