Days after announcing a public offering to beef up its acquisition kitty, Ctrip, the Chinese online travel company, revealed plans to invest in two hotel-management outfits.
The taking of minority stakes in the two hotel companies follows Ctrip's announcement in February of its intent to acquire Hong Kong-based Wing On Travel.
In the latest investments, Ctrip, headquartered in Shanghai, entered into definitive agreements with China Lodging Group to take an 8% stake. China Lodging manages HanTing Express Hotel, HanTing Seasons Hotel and HanTing Hi Inn.
China Lodging Group is in the process of going public. Ctrip's investment will be in cash at the same price as the IPO price, Ctrip says.
And, Ctrip reached an agreement to purchase a 15% equity interest in another hotel-management firm, BTG-Jianguo Hotels & Resorts.
Ctrip also has an option to take an additional 10% stake in BTG-Jianguo, which manages more than 60 properties in China. The terms of the deal were not disclosed.
Ctrip says the two investments are intended to enhance Ctrip's partnerships with hotel groups.