The acquisition strategically expands the Chinese OTA’s presence in the high-end hotel segment.
On April 17, Tongcheng Travel announced that it has signed an agreement with Wanda Hotel Development to acquire 100% equity in its wholly owned subsidiary, Wanda Hotel Management (Hong Kong) Co., Ltd., for approximately RMB 2.49 billion (about USD 341 million).
The deal values the company at 9.5 times its adjusted EBITDA for 2023. Wanda Hotel Management is the asset-light arm of Wanda Hotel Development and reported revenue of HKD 890 million (about USD 115 million) in 2024.
Wanda Hotel Management’s business includes hotel management, design, and construction. It oversees a portfolio of nine hotel brands, ranging from luxury to midscale:
- Wanda Reign (luxury)
- Wanda Vista (upscale)
- Wanda Realm (high-end full service)
- Wanda Jin (high-end select service)
- Wanda Moments (premium lifestyle)
- Wanda Amber (customized high-end)
- Wanda Meihua (upper midscale design)
- Wanda Yuehua (midscale)
- Wanda Anyue (mid-to-upscale)
As of the end of 2024, the company operated 204 hotels with over 40,200 rooms in service, with 376 more hotels under contract and pending opening.
With the completion of this acquisition, Tongcheng Travel will sifnificantly enhance its capabilities in the high-end hotel sector—a segment that was previously underrepresented in its portfolio.
Tongcheng’s existing hotel management business, led by the eLong Hotel Technology platform, currently focuses on upper-midscale, midscale, and economy brands such as Yaze Hotel, eLong Hotel, Mehood Liz Hotel, and Mehood Hotel.
(source)
