PRC and US firms gathered to advised China Lodging Group, a leading budget hotel chain, on its US$126m IPO via American depositary shares (ADS) on NASDAQ.

The chain, based in Shanghai and incorporated in 2007, offers three hotel products: HanTing Express, HanTing Seasons and HanTing Hi Inn, targeting distinct customer segments through its 236 hotels across 39 cities in China.

Zhong Lun partners Ke Yongbin and Anthony Zhao advised the underwriters on the deal. The firm worked closely with Jun He to handle all relevant PRC matters in the transaction. “This project has an excellent combination of legal advisors for the issuer, investors and underwriters and thus proceeded very smoothly,” said Zhao. 

Zhong Lun is one of China Lodging Group’s long-term legal advisors, having helped it on numerous acquisitions, PE investments and fund raisings.

China Lodging Group is not the only hotel chain to seize international opportunities. Home Inns & Hotels Management (advised by Commerce & Finance, Latham & Watkins and Simpson Thacher) also launched its IPO on the NASDAQ three years ago. And apart from listing, hotel chains have been making overseas acquisitions:  last year, Shanghai Jin Jiang International Hotels, China’s largest hotel operator, entered into a JV with Thayer Lodging Group to purchase US Interstate Hotels & Resorts for US$307m. Jin Jiang was represented by King & Wood and Baker & McKenzie, and Interstate was represented by Paul Weiss.

 The hotel industry has grown rapidly as tourism and business travel has increased as incomes grow. “With a few major hotel chains listed onshore and offshore, market consolidation will be a key driving force in this industry in the future,” said Zhao.

*Goldman Sachs and Morgan Stanley are the joint book runners of the offering. Oppenheimer & Co is the co-manager of the offering.

Related stories:

• ALB China 2010 Employer of Choice
• Zhong Lun opens Hong Kong office