SHANGHAI—GreenTree Hospitality Group Ltd. has entered into a share purchase agreement to become a major shareholder of Argyle Hotel Management Group (Australia) Pty Ltd., an owner and operator of hotels in China and South East Asia.
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.
Argyle’s hotel network consists of eight midscale and upscale brands, including the following:
- Argyle Grand Hotel
- Argyle Boutique Hotel
- Argyle Resort
- Argyle Hotel
- Ausotel Smart
- Argyle Suite
- Bondi Shack
- Argyle Academy
The brands range from business hotels to five-star luxury hotels, all showcasing distinctive Australian lifestyle and flavors. The majority of these properties are located in Southwest China. Strategically, Argyle’s brand portfolio and geographic coverage are complementary to GreenTree’s business and expansion plans, according to the company.
Argyle’s management team under the leadership of Zhang will continue.
“Alex [Xu, chairman/CEO of GreenTree] and I see immediate and long-term benefits from this collaboration,” said Zhang. “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 midscale lifestyle hotel brand sector in China and Southeast 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.”
“Argyle’s established footprint in China and Southeast Asia is complementary to our chain, and its midscale and upscale brands, with their strong Australian style, will become more popular in China,” said Xu. “We will support Kevin and his team to further enhance Argyle’s successful operations, [and]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, franchisees and our customers.”