Investment in China Economic Hotel January 05, 2007
The Board of New Capital International Investment Limited has approved to invest up to Rmb20 million in China Eco-Hotel Investments Limited ("China Eco-Hotel"), to establish a joint venture company with Sichuen Mishan Investment Limited ("Mishan") to operate and manage economic hotel business in China. Mishan is one of the leading hotel chain investment and hotel management companies in the PRC, it will provide experience and professional management to the joint venture. Mishan is currently operating 4 economy hotels in Chengdu under the "Anyi 158" brand. The new Joint Venture Company has plan to add ten more economy hotels in Chengdu and Chongqing in the next two years, then to strategically expand to other cities and establish an extensive hotel brand network in the PRC.
The growth of the PRC's economy and its tourism industry has led to a rapid development in the hotel industry. In recent years, the small, economic and friendly hotels are become more popular, especially for budget conscious travelers. The Board of the Company believed that the new investment will provide renewed impetus for the Company.