GreenTree Hospitality Group Ltd. (NYSE: GHG) today announced that it has entered into a share purchase agreement to become a major shareholder of Argyle Hotel Management Group (Australia) Pty Ltd. Mr. Kevin Zhang, its founder and CEO and his management team will remain one of the largest shareholders of Argyle, and become an integral part of GreenTree's management team. This transaction is subject to customary closing conditions and is expected to be completed on or around March 31, 2019.
Argyle hotel network consists of eight mid-scale and upscale brands, including Argyle Grand Hotel, Argyle Boutique Hotel, Argyle Resort, Argyle Hotel, Ausotel and Ausotel Smart, Argyle Suite, Bondi Shack and Argyle Academy, ranging from stylish business hotels to five-star luxury hotels, all showcasing the unique Australian life style and flavors. The majority of these properties are located in South West China. Strategically, Argyle's highly distinguished brand portfolio and geographic coverage are highly complementary to GreenTree's business and expansion plans.
Argyle's management team under the leadership of its founder and CEO, Mr. Kevin Zhang will continue to lead Argyle to fulfil its mission to become an outstanding premier hotel company in China and Asia.
Mr. Kevin Zhang commented: "I am very pleased to become part of the GreenTree family. Alex and I see immediate and long-term benefits from this collaboration. GreenTree's proven market leadership, superior technology, strong membership program and powerful development experience will augment Argyle's efforts. This will help us become a world class luxury to mid-scale lifestyle hotel brand sector in China and South East Asia and bring ultimate value to our property owners, our people and our guests. I am confident that this transaction and our joint cooperation going forward will strengthen both companies' portfolios and operations."
"We are very excited about this strategic investment," said Mr. Alex Xu, Chairman and CEO of GreenTree. "Argyle's established footprint in China and Southeast Asia is complementary to our chain, and its mid and upscale brands, with their strong Australian style, will become more popular in China. We will support Kevin and his team to further enhance Argyle's successful operations, increase the pace of its expansion to become premier hotel brands in Asia and the world. Overall, we are confident that this acquisition will benefit our shareholders, and franchisees and our customers."