Jinjiang Buys 81% Stake in 7 Days Hotel Owner Keystone

  • Shanghai Jinjiang to pay 8.3 billion yuan for hotel chain
  • Company buying hotels in China, abroad to try to beat slowdown
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Shanghai Jinjiang International Hotels Development Co. bought a controlling stake in the owner of 7 Days Group Holdings Ltd., two years after the economy hotel chain was delisted in New York.

Jinjiang International will pay 8.3 billion yuan ($1.3 billion) for 81 percent of Keystone Lodging Holdings Ltd., the owner of Plateno Group. Plateno took 7 Days private in 2013, with funding from Carlyle Group and Sequoia Capital China. The transaction gives Keystone an enterprise value of 10.8 billion yuan, Jinjiang said in a statement to the Shanghai Stock Exchange Friday announcing the deal.