Chic-design hotels tap growing middle class and domestic consumption in China
Beijing, China ? Global alternative asset manager The Carlyle Group today announced that its Asia buyout fundCarlyle Asia Partners III L.P. has acquired a controlling stake of 49% in Mandarin Hotel Holdings Limited to be the largest shareholder. Mr. Eric Zhang, Managing Director of The Carlyle Group, will become the company?s co-chairman. Mandarin manages a mid-market hotel chain in China under the brands of ?Crystal Orange Hotel? and ?Orange Hotel?. Carlyle?s investment aims to tap into China?s burgeoning middle class and domestic consumption.
Founded in 2006, Mandarin Hotel Holdings Limited operates 25 designer hotels in six major cities in China, including Beijing, Tianjin, Dalian, Nanjing,Hangzhou and Ningbo. With its strength in innovative product design, Mandarin has established two brands ? Crystal Orange Hotel and Orange Hotel. Mid-high end Crystal Orange Hotel offers modern, chic design and quality in-room facilities to business and leisure travelers. The Crystal Orange hotels in Beijing and Hangzhou were named ?Best Design Hotel in China? and ?Best Boutique Hotel in China? in China Hotel Golden Dragon Award 2010 respectively. Mid-end Orange Hotel provides affordable solutions to budget-sensitive customers.
Eric Zhang, Managing Director of The Carlyle Group, said, ?Mandarin Hotel Holdings Limited is uniquely positioned in the mid-market hotel segment with its competitive edge in product design and marketing strategies. We are confident in the growth potential of Crystal Orange Hotel and Orange Hotel as well as the mid-market hotel segment in China. With our expertise in the hotel industry, we will support the company?s continuous improvement, maximize its full potential and take it to the next level of market penetration and customer satisfaction.?
Mr. Wu Hai, Founder and CEO of Mandarin Hotel Holdings Limited, said, ?We are proud of the achievements made by Crystal Orange Hotel and Orange Hotel over the past six years, and see the partnership with Carlyle as an important milestone for the long-term development of our hotel chain. By leveraging Carlyle?s international network and industry knowledge, we expect to further strengthen our brand awareness, improve service quality through enhanced training programs and continue to expand our presence in China.?
Carlyle is one of the first global private equity firms to establish a presence in China. To date, Carlyle has invested approximately US$4 billion in more than 60 deals in China.