GreenTree Hospitality Group Ltd. (NYSE: GHG) (“GreenTree” or the “Company”), a leading franchised and managed hotel chain in China, today announced that it has entered into a share purchase agreement to become a major shareholder of Argyle Hotel Management Group (Australia) Pty Ltd. (“Argyle”), an owner and operator of hotels in China and South East Asia. Mr. Kevin Zhang, its founder and CEO and his management team will remain one of the largest shareholders of Argyle, and become an integral part of GreenTree’s management team. This transaction is subject to customary closing conditions and is expected to be completed on or around March 31, 2019.
Argyle’s management team under the leadership of its founder and CEO, Mr. Kevin Zhang will continue to lead Argyle to fulfil its mission to become an outstanding premier hotel company in China and Asia.
Mr. Kevin Zhang commented: “I am very pleased to become part of the GreenTree family. Alex and I see immediate and long-term benefits from this collaboration. GreenTree’s proven market leadership, superior technology, strong membership program and powerful development experience will augment Argyle’s efforts. This will help us become a world class luxury to mid-scale lifestyle hotel brand sector in China and South East Asia and bring ultimate value to our property owners, our people and our guests. I am confident that this transaction and our joint cooperation going forward will strengthen both companies’ portfolios and operations.”
“We are very excited about this strategic investment,” said Mr. Alex Xu, Chairman and CEO of GreenTree. “Argyle’s established footprint in China and Southeast Asia is complementary to our chain, and its mid and upscale brands, with their strong Australian style, will become more popular in China. We will support Kevin and his team to further enhance Argyle’s successful operations, increase the pace of its expansion to become premier hotel brands in Asia and the world. Overall, we are confident that this acquisition will benefit our shareholders, and franchisees and our customers.”
About Argyle Hotel Management Group (Australia) Pty Ltd.
The Argyle Hotel Management Group (Australia) Pty Ltd. (“Argyle”) a leading hotel management group manages over 100 hotels and resorts across the Asia Pacific, and has earned a reputation as an Australian icon in Asia Pacific. With more than a decade of experience providing the very best that Australian hospitality has to offer, Argyle has built a comprehensive operating platform and attracted a group of hotel professionals with expertise knowledge. Argyle comprises eight distinct brands – Argyle Grand Hotel, Argyle Boutique Hotel, Argyle Resort, Argyle Hotel, Ausotel and Ausotel Smart, Argyle Suite, Bondi Shack and Argyle Academy. Argyle’s brands cover every segment from mid-scale to luxury and long term stay.
Argyle has won awards including the New South Wales Premier Export Award in 2017, the New South Wales finalist for the Australian federal government’s Business Services Award in 2017, and the Winner of the Australian Chamber of Commerce Award for Excellence in Services 2017/2016. The China Tourism Board has included it among China’s top 10 international hotel groups and top 60 domestic hotel groups since 2013. For more information on Argyle, please visit http://cn.argylehotels.com/.
About GreenTree Hospitality Group Ltd.
GreenTree Hospitality Group Ltd. (“GreenTree” or the “Company”) (NYSE: GHG) is a leading franchised hotel operator in China. As of September 30, 2018, GreenTree had 2,558 hotels, among which 2,528 are franchised and managed hotels. The Company had the highest proportion of franchised-and-managed hotels among the top four economy to mid-scale hotel networks in China. In 2017, GreenTree was the fourth largest economy to mid-scale hotel group in China in terms of number of hotels according to China Hospitality Association. The Company has built a strong suite of brands including its flagship “GreenTree Inns” brand as a result of its long-standing dedication to the hospitality industry in China and consistent quality of its services, signature hotel designs, broad geographic coverage and convenient locations. GreenTree has positioned its brands to appeal to value-and-quality-conscious business travelers and leisure travelers. For more information on GreenTree, please visit http://ir.998.com.