China-focused hotel operator New Century Hotel, which is backed by the Carlyle Group, is planning a $400 million initial public offering, Reuters reported, citing news in the Wall Street Journal. The hotel group operates 70 hotels across China.
(Reuters) – New Century Hotel Group Ltd, a China-focused hotel operator backed by private equity firm Carlyle Group , plans a $400 million initial public offering in Hong Kong in September, The Wall Street Journal reported on Monday, citing people familiar with the plans.
The company, which operates 70 hotels in cities such as Beijing, Shanghai and Chengdu, will brave equity markets despite a slump in recent days that prompted issuers such as China Everbright Bank Co Ltd and others to postpone offerings, the newspaper said.
New Century planned to take advantage of demand for tourism and travel in China to draw investors to the deal, the newspaper added. The company had hired Deutsche Bank AG (DBKGn.DE) and Morgan Stanley to handle the offering, the Journal said.
Carlyle declined to comment when contacted by Reuters. (Reporting by Elzio Barreto and Stephen Aldred; Editing by Chris Lewis)