HNA Group Outbids Malaysian Government Investment Arm Khazanah, LVMH, Four Seasons#
The Chinese conglomerate HNA Group, which is involved in industries as diverse as airlines, hotels, airport management, real estate, retail and tourism, appears to be set to acquire the boutique luxury hotel group Aman Resorts (Amanresorts), which currently operates 25 properties in 15 countries. As the Business Standard of India reports this week, bankers and analysts close to the deal say HNA put in an bid of around 24 billion rupees (US$452 million) to buy Aman Resorts outright, beating out its top competitor, the Malaysian government investment arm Khazanah. According to the Business Standard, Khazanah's initial bid for the resort chain in June 2010 was US$300-350 million for a "controlling stake."
The newspaper adds that additional bids for Aman Resorts recently received by India's top real estate firm, DLF Group -- which bought a 97 percent stake in the chain for US$400 million in 2007 -- came from the luxury powerhouse LVMH Moët Hennessy (LVMH) and Kingdom Holdings, owner of the Four Seasons. The remaining three percent of the company remains owned by Aman Resorts founder Adrian Zecha. Considering DLF was hoping to make a sale at around US$473 million, HNA's bid seems like a relative bargain, particularly if it buys the resort chain outright.
DLF is expected to announce the completion of the sale within the next two weeks, though company reps from DLF and Aman Resorts are staying mum on the exact details. If HNA does indeed take control of Aman Resorts, it will increase its hotel holdings significantly and obtain a far greater global footprint. Currently, HNA Hotels and Resorts, headed by board chairman Chen Feng, operates 40 luxury hotels and resorts in China with only three overseas locations in Belgium. Aman Resorts' 25 properties, however, are truly global, located in Thailand, Bhutan, Cambodia, China, France, Indonesia, Laos, Montenegro, Morocco, Philippines, Sri Lanka, India, the Turks and Caicos Islands and the US. Upon the completion of the sale, DLF plans to retain one Aman property in Delhi, though the remaining two Indian locations, located in Rajasthan, will be taken over by the new owners.
