Shearman & Sterling is advising the international Chinese hotel group Jin Jiang International Holdings Co., Ltd. in connection with the signing of an agreement entered into with Starwood Capital Group regarding Starwood Capital Group’s potential sale of the French companies Groupe du Louvre and Louvre Hotels Group to Jin Jiang for an undisclosed amount. The proposed transaction is subject to the “information and consultation” process with Louvre Hotels Group’s central works council.
As one of the premier hospitality and travel conglomerates in China, Jin Jiang International Holdings has three core businesses: hotel investment & management, travel services and transport & logistics. It owns and operates over 1,700 hotels in 11 countries. Louvre Hotels Group is the second-largest hotel group in Europe, with a network of more than 1,100 hotels (more than 90,000 rooms) in more than 40 countries worldwide.
In November 2011, Louvre Hotels Group and Jin Jiang International Holdings established a commercial partnership which notably introduced a co-branding program to selected hotels in major cities of China and France. The partnership aimed at building up public awareness of Louvre and Jin Jiang in each other’s home markets and boosting hotel tourism between the two countries, thus laying a solid foundation for the potential transaction.
The closing of this potential transaction, which is to be completed through Starwood affiliate Star SDL Investment Co., is expected to take place during the first quarter of 2015. The “information and consultation” process with Louvre Hotels Group’s central works council in France with regards to this transaction will be initiated immediately.