Shanghai Jin Jiang International Hotel Development Limited Company has signed an agreement with its shareholder Shanghai Jin Jiang International Company for increasing the investment of its economy franchised hotel brand, Jin Jiang Inn.
The agreement says that both Jin Jiang Hotels and Jin Jiang International will increase the investment on Jin Jiang Inn according to their original investing proportions in Jin Jiang Inn. Jin Jiang International will input an investment of RMB1.1 billion with a registered capital of RMB740 million, and Jin Jiang Hotels will inject RMB275 million with a registered capital of RMB185 million.
About RMB580,000 of the investment will be paid by cash, and the rest will be paid by transferring the assets of shares of some budget hotels. The assets involved were worth RMB274 million by the end of October 2006.
Jin Jiang International says that Jin Jiang Inn Investment & Management Company mainly focuses on the investment of budget hotels in the Jin Jiang Inn chain. In order to expand its business in mainland China, Jin Jiang Inn Investment & Management Company needs its shareholders to provide additional capital.
Jin Jiang Inn was founded in 1996 and was the first budget hotel in China. It now has 194 chain outlets in China and plans to develop 500 more in China within three years.