AsianFin — Tongcheng Travel is making a bold leap into China's premium hotel market with the acquisition of 204 high-end hotels from Wanda Group, marking the industry's largest hotel M&A deal in recent years.
In a regulatory filing on April 17, Tongcheng Travel announced it will acquire 100% equity in Wanda Hotel Management (Hong Kong) Limited from Wanda Hotel Development for 2.49 billion yuan (approx. $345 million).
The blockbuster deal gives Tongcheng ownership of nine major hotel brands under the Wanda umbrella—including Wanda Reign, Wanda Vista, and Wanda Realm—covering over 40,200 guest rooms across 204 operational hotels. An additional 376 hotels have already signed management contracts and are awaiting launch.
The acquisition values Wanda Hotel Management at roughly 9.5 times its 2023 adjusted EBITDA. According to the company, the unit generated revenue of 890 million Hong Kong dollars in 2024.
Once the transaction is finalized, Wanda Hotel Management will become an indirect wholly-owned subsidiary of Tongcheng Travel. Market analysts view the acquisition as a game-changing move that positions Tongcheng at the forefront of China's upscale hospitality sector. The acquired portfolio's established brands, contract pipeline, and seasoned management team are expected to significantly enhance Tongcheng's competitiveness.
"The acquisition fills a key strategic gap in our high-end hotel offering," Tongcheng said in a statement, highlighting the synergies with its existing hotel technology platform and its bullish outlook on the growth of China's domestic hotel management sector.
Tongcheng, once known primarily as an online travel agency, has spent years building out its upstream hotel business. It began with investments in budget and mid-tier hotel brands like Meicheng, Mehood, and Perlin. In 2021, it launched Yilong Hotel Management, followed by the Yilong Hotel Technology platform, integrating multiple hotel management firms under one digital ecosystem.
By the end of Q1 2025, the platform supported 10 hotel management companies and 12 brands ranging from budget to high-end offerings. The Wanda deal brings premium scale and brand strength that Tongcheng previously lacked, further deepening its integration of online booking, hotel operations, and supply chain control.
Tongcheng's move comes amid broader restructuring across China's hospitality industry. High-end hotels are traditionally capital-intensive, requiring long construction cycles and strong brand equity. Acquiring an established brand like Wanda Hotel Management allows companies like Tongcheng to bypass those barriers while securing immediate scale.
Competitors are also racing to claim territory. In March, Trip.com Group took a controlling stake in homestay brand Dalezhiye, and New Oriental founder Yu Minhong joined the board of boutique hotel chain Songtsam following a major investment. Meituan has quietly expanded into hotel management through investments and new business units.
Despite price pressures and asset markdowns in the hotel sector—judicial auctions show a spike in properties sold below 70% of valuation—industry expansion remains strong. According to the 2025 China Hotel Investment White Paper, China had over 370,000 hotels with 15 rooms or more as of end-2024, up 34% from 2020.
Tongcheng's acquisition signals a shift in strategy for online platforms—from merely selling room nights to owning and operating hospitality assets. With control over pricing, user data, operations, and distribution, companies aim to drive profitability through full-chain digitization.
"In an increasingly price-sensitive market, integrating upstream assets is the optimal way to boost margins," said one analyst. "This isn't just M&A. It's about reshaping the entire hotel value chain."
As digital travel platforms evolve into asset-light hotel operators and tech-driven ecosystem players, the hospitality landscape in China is entering a new era—one defined not just by inventory, but by influence, integration, and data-driven optimization.
(Note: 1 USD equals about 7.25 yuan)
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