October 2, 2004
TIANJIN, CHINA - Teda Travel Group Inc. has signed a memorandum of understanding that would give it a majority share of a new hotel management company. The locally based company says the agreement calls for Singapore-based Landmark Hotel Group Pte Limited to assign all of its current hotel management contracts into a new venture known as Landmark International Group Ltd. that would be majority owned by Teda Travel Group. The deal is scheduled to close by the end of October.
A source at Teda Travel tells GlobeSt.com that the at least 11 hotel management contracts will be transferred to the new company. All are four- and five-star properties, according to the source. The financial details of the transaction were not released by the parties involved and not otherwise immediately available.
Teda Travel is a property management company providing services to hotels and resorts throughout China. It has been a private company in China for 10 years. Toward the beginning of the year, Teda Travel became a publicly traded company in the US through a reverse merger. Teda Travel is now traded on the OTCBB under the symbol “TTLV,” making it the only full service Chinese travel and hospitality company in China that is listed in the US market. In August, the company signed an agreement to acquire a majority interest in Teda Resort Alliance Development Co. Ltd., the largest timeshare company in China with a current estimated 80% share of the timeshare market.
Tianjin is the third largest city in China and TEDA is the second largest Economic Development zone behind the city of Shenzhen. According to studies by the World Trade Organization, the number of tourists going to China reached 33 million in 2003, and currently ranks as the 5th most visited country in the world. China is expected to be the most visited country in the world in 10-15 years time. In addition, China is the home of the 2008 Olympics, the city of Shanghai will host the 2010 World Expo, and the city of Guangzhou will host the Asia Games in the same year.
In an open letter to shareholders, Teda Travel CEO Godfrey Hui cites a recent travel and tourism pact between the US and China that will open up more direct flights between the two countries. “With international travel poised for growth it is important for a company like Teda Travel Group to not only be ready for the influx of international travelers, but those travelers will undoubtedly be traveling within China,” says Hui. “It is Teda Travel Group’s goal to be the brand of choice for these new travelers.”
|