Wanda Hotel Development Co said on Tuesday it would buy Wanda Hotel Management (Hong Kong) Co from a unit of its parent Dalian Wanda Commercial Properties Co for HK$878 million ($112.4 million), according to a statement it posted on the website of the Stock Exchange of Hong Kong.
For hotel projects that were sold to R&F Properties and Sunac China Holdings in July, Wanda Hotel Management will continue to manage them until each contract expires, said the statement. The two buyers have offered priority to the hotel management entity to extend those contracts, it added.
Wanda Hotel Development said on August 9 that it planned to take over theme park operator Wanda Culture Travel Innovation Group Co for 6.3 billion yuan ($950 million).
The Hong Kong-listed company said it is still in talks with Wanda Culture and Dalian Wanda Commercial Properties regarding the structure and terms of the acquisition.
If the two transactions can be completed smoothly, the two asset-light companies - Wanda Hotel Management and Wanda Culture Travel Innovation - will be injected into the listed company in Hong Kong, media reported Wednesday.
Wanda Hotel Management operates 65 hotels in China and has contracts to manage and operate 13 more owned by third parties that are still under construction. Two of those are being built in Malaysia and Turkey.
