Wyndham Hotel Group, a subsidiary of Wyndham Worldwide Corporation, announced today that investment management firm Aetos Capital has committed up to $50 million to invest in Tian Rui Hotel Corporation, the main franchisor of Super 8 hotels in China.
“The Super 8 brand has built a terrific reputation in China, and we believe the chain is well-positioned to capture future growth as the country continues its economic expansion,” Scott Kelley, chief executive officer of Aetos Capital Asia and head of its real estate business, said in a statement.
A growing economy in China has given rise to increased interest in the hospitality industry. “This is an excellent opportunity to invest in a rapidly emerging segment of China’s hotel industry,” Kelley added.
Wyndham’s Super 8 economy hotel brand was introduced to China in 2004. Tian Rui Hotel Corporation, based in Hong Kong, has opened 49 hotels in the country under the Super 8 banner, totaling more than 4,700 rooms—with plans to develop an additional 67 hotels.
“This investment will accelerate the development of the Super 8 brand throughout China,” Steven Rudnitsky, president and chief executive officer of Wyndham Hotel Group, said in the statement. “The $50 million commitment by Aetos represents a powerful vote of confidence in the integrity and strength of the Super 8 brand and our important alliance with Tian Rui Hotel Corporation.”
Based in New Jersey, Wyndham has close to 6,500 hotels on six continents.
Aetos Capital, founded in 1999, manages two private equity real estate funds, Aetos Capital Asia and Aetos Capital Asia II, with approximately $3 billion of equity commitments. The funds target real estate investments primarily in Asia.
In June, the firm formed a strategic partnership with China Life Asset Management to identify and evaluate real estate investment opportunities throughout China. China Life Asset Management, the largest institutional investor in the Mainland Chinese capital market, is a division of China Life Insurance Group, China’s biggest insurer.