Louvre Hotels Group (LHG), which operates “Golden Tulip hotels” in South East Asia and was fully acquired in March 2015 by Shanghai-based Jin Jang Holdings International, is now ready to shift gears with strong expansion plans.
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 investments. It is a great opportunity for Louvre Hotels Group to benefit from this 5-year roadmap, enabling continuous investment to accelerate development in France, Europe, Asia and the rest of the world. The new ownership also gives LHG access to the largest outbound touristic market of which 30% is managed by Jin Jiang Tour Operator.
LHG and Jin Jiang share the same passion for the hotel industry. Prior to the acquisition of Louvre hotels Group by Jin Jiang in March 2015, the two companies had been partnering for 4 years with a distribution agreement.
Boosting expansion with a EUR2.5 billion line of credit
The development is now receiving a strong boost. Strengthened by the €2.5b line of credit granted by Chinese bank ICBC over a 3-year term, a substantial enough budget is available to shift gears and accelerate the development strategy of the Group through organic development, innovations, renovation of existing hotels, or external growth.
Accelerating brands’ development into the Chinese market
With the Chinese shareholder’s backing, the brands are able to penetrate a market with high entry barriers. Louvre Hotels Group will launch Campanile economy hotels in China, with first opening in Shanghai at the end of 2015. The objective is 500 hotels in the next 5 years.
Further development is planned for the Golden Tulip brand: among the first, the conversion of a flagship JJ hotel in Shanghai.
Strengthening presence in Thailand, Indonesia and South East Asia
In Thailand the group currently has 5 Golden Tulip and Royal Tulip Hotels in operation and development. There are currently advanced plans for the launch and a roll out of a group of 30 Tulip Inn economy hotels, economy hotels throughout the Kingdom, in the main and secondary cities around the country.
Furthermore there are aggressive plans for further expansion for the 5 and 4 star hotels and resorts in the main destinations Bangkok, Phuket and Pattaya.
In addition there is an interest for strategic investments in the hotel sector through portfolio acquisitions. The portfolio in Thailand is managed under a partnership with BHM Asia out of Bangkok.
Louvre Hotels Group currently operates 8 hotels in Indonesia, in Bali, Kalimantan, Java. In the next six months there are additional 10 hotels scheduled to open among which Royal Tulip hotels, Golden Tulip hotels, Kyriad hotels and X2 Resorts.
An additional 12 hotels are in the development for opening in 2016, ranging from Luxury beach Resorts, and Golf Resorts under the “Royal Tulip” Brand, Design Boutique Resorts under the “X2” Brand, Superior Business hotels and resorts under the Golden Tulip brand and economy business under the Kyriad brand and Golden Tulip Essential brand.
The total portfolio of Louvre Hotels Group in Indonesia is to reach over 28 hotels by the end of 2016.
The Group is in advanced stages to open up various hotels in Malaysia, Vietnam and the Philippines. “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 capitalize on the synergy with our new shareholders. We have recently opened some very nice new properties giving the brand a boost as an international group and we are able to make good entries into various markets,” commented Mr Mark van Ogtrop, Managing Director of Louvre Hotels Group South East Asia.
Mr Erick Herlangga, Vice President Development, South East Asia added, “With our brands being well established in our base countries we now see the opportunity to reach out and grow in the other South East Asian countries, where we witness a strong demand for an international brand like ours.”
About Louvre Hotels Group
Louvre Hotels Group is a major player in the global hotel industry, with over 1,100 hotels for a total capacity of more than 95,000 guest rooms in 48 countries. It operates a complete portfolio of 6 brands ranging from 1 to 5 stars: Première Classe, Campanile, Kyriad, Tulip Inn, Golden Tulip and Royal Tulip. Louvre Hotels Group is owned by Jin Jiang International Holdings Co. Ltd., one of China’s leading travel and tourism conglomerates. The alliance between Louvre Hotels Group and Jin Jiang’s hotel branch currently accounts for over 2,800 hotels and 345,000 guest rooms in more than 50 countries making it one of the world’s foremost hotel groups.