SHANGHAI: China’s Jin Jiang International Group and Fairmont Hotels & Resorts have formed a joint venture company to renovate and reopen Shanghai’s landmark Peace Hotel in 2010.
Fairmont chief executive William Fatt said the addition of the Fairmont Peace Hotel Shanghai would provide the ideal platform for further expansion in Asia.
Situated on Shanghai’s Bund, the 12-story Peace Hotel was first opened in 1929 as the Cathay Hotel on the site of the former Sassoon Mansion.
The Peace Hotel is Fairmont’s second announced project in the region, following a recent deal to develop a property on Macao’s Cotai Strip.
Jin Jiang International Hotel Group has more than 270 hotels with 53,000 rooms in operation or under development, including the fast-growing Jin Jiang Inns budget brand.
The funds for expansion have come largely from Jin Jiang International Hotels Group initial public offering on the Hong Kong stock exchange that raised approximately RMB2.4 billion (US$30m)
Part of the IPO proceeds will be used to renovate the Peace Hotel, as well as two more Shanghai properties, Cypress Hotel and Jin Jiang Tower.
Jin Jiang is also receiving some outside help. Starwood Capital is making a US$30 million strategic investment in the group to become its largest outside shareholder.
The White Swan Hotel in Guangzhou is also embarking upon a 10-month renovation this December. The five-star hotel plans to close its business entirely during the large-scale renovation..
by Ian Jarrett
