Wyndham Hotel Group says that Aetos Capital has committed to invest up to US$50 million in Tian Rui Hotel Corporation, master franchiser of the Super 8 hotels in China.
Wyndham Hotel Group's Super 8 brand was introduced to China in 2004. Tian Rui Hotel Corporation has opened 49 Super 8 hotels in China, representing more than 4,700 rooms, and has signed agreements to develop an additional 67 hotels.
Mitchell Presnick, Tian Rui Hotel Corporation's chief executive officer, said Aetos' investment will enable Tian Rui Hotel Corporation to broaden its opportunities beyond those possible as a pure franchiser and to begin operating and managing hotels.
"By expanding into hotel operations and management, we will capture a wider range of the value chain and better serve our franchisees," he said. "We welcome Aetos as a partner in the development of the Super 8 brand in China. The combined resources of Aetos and Wyndham Hotel Group will allow us to further leverage our national network of relationships with major developers and operators all across China."
Hotel growth in China has been propelled by the country's rapidly growing economy, which has increased the amount of business and leisure travel. The World Travel & Tourism Council has predicted that China will become the second largest travel and tourism economy in the world by 2016. In addition, the 2008 Olympic games in Beijing are expected to bring hundreds of thousands of international visitors to China and attract additional worldwide interest in China as a travel destination.