AI-generated image
AsianFin -- Shanghai Jin Jiang International Hotels Co. has filed for a listing on the Hong Kong Stock Exchange, positioning itself to become the first Chinese hotel group to achieve a dual A+H share structure.
The move comes as Hong Kong’s stock market rebounds, prompting a wave of A-share-listed companies to tap the city’s capital markets.
According to recent filings, Jin Jiang Hotels submitted its application to the HKEX’s Main Board with Orient Securities International serving as the sole sponsor. The company hopes the offering will strengthen its balance sheet, broaden international investor exposure, and create financial headroom for future growth.
Jin Jiang’s listing bid comes at a time of major transition in China’s hospitality industry. Although the number of hotels and rooms continues to rise—570,000 lodging facilities and 19.3 million rooms as of the end of 2024—profitability is under strain. Hotel room supply has outpaced demand, and despite a 14.8% year-on-year rise in domestic trips to 5.615 billion, the total remains below pre-pandemic levels in 2019.
Key industry indicators have turned negative. The average hotel occupancy rate in 2024 dropped to 58.8%, while average daily rates fell to RMB 200, a 5.8% decline from a year earlier. Revenue per available room (RevPAR) for mainland hotels also declined by around 5%, with Jin Jiang’s full-service hotels in China experiencing a sharper 10.8% fall.
Leading players have struggled to protect margins. Huazhu Group’s revenue rose 9% in 2024, but net profit dropped over 25%. Jin Jiang reported a 4% fall in revenue to RMB 14.06 billion and a 9.1% decline in net profit to RMB 911 million. The trend has continued into 2025: first-quarter revenue fell 8.25% year-on-year, while net income plunged 81% to just RMB 36 million.
The upcoming IPO is intended in part to reduce leverage. Jin Jiang is seeking to convert expensive debt into equity, lower its financing costs, and improve the health of its balance sheet. Executives also see Hong Kong as a springboard for international expansion, enabling the company to raise its profile among global investors, pursue overseas acquisitions, and position itself as a global hospitality leader.
At present, parent company Jin Jiang International holds a substantial portion of the company’s A-share float. Issuing H-shares would help diversify the shareholder base, improve trading liquidity, and increase capital flexibility for future operations.
Jin Jiang is not without strengths. It is the largest hotel group in China and the world by number of properties, operating 13,416 hotels with nearly 1.3 million rooms as of the end of 2024, according to Frost & Sullivan. The group’s brand portfolio spans more than 40 banners across economy, midscale, upscale, and luxury segments.
Its scale provides advantages in procurement, guest reach, and operational efficiency. A wide network also allows the company to serve varied regional markets and customer segments.
Still, persistent challenges cloud the outlook. Jin Jiang’s overseas business has posted sustained losses, particularly after its 2015 acquisition of France’s Louvre Hotels Group, which has reported five consecutive years of red ink. Integration has been complicated by cultural and operational differences, and the acquisition has yet to deliver meaningful synergies.
Meanwhile, the group’s loyalty program lags behind peers. With 204.9 million members and a central reservation rate of 56.9%, it trails rival Huazhu’s 270 million members and 66.4% booking rate via internal channels. This points to weaknesses in member retention and private domain conversion.
The reception to the Hong Kong IPO remains uncertain. While a successful listing could help ease financial strain and broaden global reach, investors remain cautious given ongoing challenges in the domestic hospitality sector, rising competition, and volatile demand patterns. As of writing, Jin Jiang’s A-share stock trades at RMB 22.21 with a trailing P/E ratio of 31.35, reflecting muted investor enthusiasm.
Increased transparency, improved digital operations, and a clearer international growth narrative may be needed to shift sentiment. Whether Jin Jiang can capitalize on its scale and brand diversity to unlock sustainable profits—and whether investors will buy into that story—will be closely watched in the months ahead
The IPO is more than a capital-raising exercise. It is a litmus test of the company’s strategic discipline, operational execution, and ability to adapt to shifting global hospitality dynamics.
(Note: 1 USD equals about 7.25 RMB)
