Core Viewpoint - Wanda Hotel Development is selling its hotel management business to Tongcheng Travel for approximately 24.97 billion yuan, as part of a strategy to address financial challenges and unlock value in its hotel management segment [4][5][6]. Group 1: Transaction Details - The transaction involves the sale of 100% equity of Wanda Hotel Management (Hong Kong) Limited to Tongcheng Travel's wholly-owned subsidiary [4]. - Wanda Hotel Development expects to net approximately 24 billion HKD from the transaction, which will be proposed to be distributed to shareholders as dividends [4][7]. - The valuation of the hotel management business is set at 9.5 times its adjusted EBITDA for 2023, reflecting current market conditions and comparable company valuations [7]. Group 2: Financial Implications - Based on a 65.04% controlling stake, Wanda Group is expected to recover around 15.6 billion HKD from this sale, which is relatively small compared to its substantial debt obligations [5]. - The company plans to retain the proceeds for general operational funds or future investments, with a significant portion likely flowing to its controlling shareholder, Wanda Group [8][7]. Group 3: Strategic Rationale - Wanda Hotel Development believes that the sale will unlock part of the value of its hotel management segment, especially given the conservative market sentiment towards its investment property leasing business [7]. - Tongcheng Travel sees significant growth potential in the Chinese hotel management market and views the acquisition as a means to enhance its competitiveness in the high-end hotel sector [11]. Group 4: Business Overview - Wanda Hotel Management operates a range of hotel brands, including luxury and high-end options, with a total of 204 hotels currently in operation and over 40,200 rooms [12][13].
万达酒店发展25亿元出售酒店管理业务，同程旅行接盘