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Accor Sells Half of Its Stake in Huazhu as Chinese Partner Eyes Europe

December 6, 2019

Has Accor’s partnership with Huazhu worn out its usefulness given the Chinese hotel giant has built a strong positioning in the economy and midscale segments in China? Huazhu now wants to focus on luxury and upper upscale, along with international expansion starting in Europe.

Accor is selling half its stake in Huazhu Group, its strategic partner in China, for $451 million. It will retain a 5.8 percent stake in the Nasdaq-listed multi-brand Chinese hotel company, which last month entered into an agreement to buy Frankfurt-based Deutsche Hospitality for about $777 million (700 million euros).

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