How $2.80 Unlocks Luxury Real Estate

Luxury home prices are growing twice as fast as the broader market. Pacaso's luxury portfolio maximizes demand with a streamlined co-ownership platform. They've made $110M+ in gross profits already and recently reserved the Nasdaq ticker PCSO.

Surviving A Shattered Dream: The Wanda Group

The Bamboo Works
April 24, 2025

China's third-largest online travel company is buying the hotel management unit of a former highflying operator now struggling to stay one step ahead of its creditors

Key Takeaways

  • Tongcheng has agreed to buy the hotel management arm of Dalian Wanda, adding high-end properties to its growing portfolio of 2,300 managed hotels
  • The deal gives Dalian Wanda, a former property and entertainment giant, more cash to meet its debt commitments

It's not a match made in heaven, at least according to shareholders of Tongcheng Travel Holdings Ltd. (0780.HK), which last week announced it would buy the hotel management, construction and design business of Wanda Hotel Development Co. Ltd. (0169.HK) for 2.5 billion yuan ($342 million). Tongcheng's shares fell 6% after the announcement, even as Wanda's shareholders welcomed the news by sending it stock up as much as 24% before the stock closed up a more modest 10%.

The deal, announced April 17 just before the long Easter holiday, gives Tongcheng 100% equity in the management, design and construction assets for Wanda's nine hotel brands, ranging from luxury to mid-scale, covering 204 properties with 40,200 rooms and another 376 hotels under contract that have yet to open. These will join Tongcheng's existing portfolio of 2,300 managed hotels, with another 1,400 in the pipeline.

Tongcheng's existing hotel management business consists of mostly midscale and economy brands such as Yaze, eLong and Mehood. The sale will see Tongcheng take over the Wanda brands and management teams, but the actual property assets aren't included.

The two portfolios are complementary, and part of a fast-expanding business segment that Tongcheng so far only identifies in its financial reports as "others," which includes hotel management and online package tour services. Tongcheng's core online lodging and transport bookings businesses represented 27% and 42% of its 17.3 billion yuan in revenue last year.

But while revenue for both of those core categories grew 20% year-over-year, the "other" category grew by a much faster 35%, reaching 2.3 billion yuan, or 13% of total revenue. The new Wanda purchase could spark even faster growth for the hotel management business, since those hotels are typically higher-end and bring in bigger management fees per property.

Tongcheng, whose major backers include internet giant Tencent and leading online travel agent Trip.com (TCOM.US, 9961.HK), is China's third largest online travel agency (OTA) with 14% of the market, well behind Trip.com's leading 50% share. Still, its evolving business model distinguishes it from its peers, and its managed hotels could ultimately benefit if it gives those properties preferred status on its platform.

Tongcheng also has plenty of cash to help pay for the acquisition, with 8 billion yuan at the end of the last year, more than triple the acquisition price. The purchase price also looks quite affordable, equal to 5% of Tongcheng's own market cap of HK$48.67 billion ($6.27 billion).

In announcing the acquisition, Tongcheng said the assets would "enhance the company's competitiveness in high-end hotels, thus further solidifying its position in the industry."

Fallen star

On the other side of the transaction is Wang Jianlin, founder of Dalian Wanda, which owns or controls 65% of Wanda Hotel. Wang was once China's richest man, worth $31.3 billion in 2017 on his then-booming real estate empire. But things began to unravel as early as 2016, when he delisted his Wanda Dalian Commercial Properties, which he believed was undervalued, from Hong Kong. He then failed to re-list the company in Shanghai as part of his plan, leaving him in heavy debt to an investor group that helped to fund the buyout.

Wanda was one of China's earlier property giants to run into trouble after taking on too much debt during the country's property boom, and has been selling off assets to meet bond repayment deadlines since 2017. In 2018, it put prize assets including Atletico Madrid and AMC Entertainment Holdings up for sale. It has also sold more than 30 of its signature Wanda Plaza mixed-use shopping and office complexes in the past three years, together with its British luxury yacht manufacturer Sunseeker International.

Recent media reports said it is hoping to redeem 2.27 billion yuan in onshore bonds early, which may explain why it's eager to close the deal with Tongcheng and get its hands on some fresh cash. Wanda Hotel Development is also probably in need of its own cash, after falling into the red last year with a loss of nearly 1 billion yuan.

The assets being acquired by Tongcheng posted a profit of HK$21.6 million last year, down sharply from HK$148.6 million in 2023.

The sale comes after a similar move in March last year that saw Wanda sell 60% of its Newland Commercial Management unit, which manages 496 Wanda shopping malls across China, to a consortium led by PAG for 60 billion yuan. Those and other sales have kept Wang Jianlin one step ahead of his creditors, at least so far.

So, what explains the negative reaction by Tongcheng shareholders? As we've already noted, the deal looks complementary for Tongcheng's existing low-end hotel management business by providing it with nine new premium brands. But it also comes at a time when the market is downshifting as consumers rein in their spending with China's slowing economy.

Investors may like Tongcheng's lower-end hotel management business, which could thrive as travelers look for more affordable lodging options to save money. But such downgrading could come at the expense of the pricier options that Tongcheng is now acquiring.

Tongcheng and Wanda already have a relationship that dates back at least 10 years, even as their fortunes have moved in opposite directions lately. Wanda was one of three investors in a 1 billion yuan funding round in 2016, which also included Trip.com and Tencent.

The same year, Tongcheng bought Wanda's travel agency business for 700 million yuan, which had nearly 1,000 shops nationwide at that time. Wanda set up that business in 2013, at a headier time when it was aiming to build up a leisure and entertainment empire that it likened to a Chinese version of Disney. But that vision is now a distant memory, with companies like Tongcheng emerging as buyers for pieces of a former empire that Wanda would probably like to move on from.

Continue Reading...

Popular

Ivanka Trump Drops by Eagles Locker Room, Responds to Player Who Called Her 'Beautiful': 'Stopped By To Say Hi! Sorry To Miss You! Go Birds!'

Ivanka Trump made an unexpected visit to the Philadelphia Eagles locker room on Friday. The visit seemed to be aimed at meeting cornerback Eli Ricks, who had previously complimented her.

In Spain, a homelessness crisis unfolds in Madrid's airport

MADRID (AP) — Every morning at 6 a.m., Teresa sets out in search of work, a shower and a bit of exercise before she returns home. For around six months, that has been Terminal 4 of .

The Secret Map of America, Declassified... - Ad

Inside a Maryland man's safe is a map showing a "secret America" - first envisioned by Harry Truman in 1946 and classified for decades. Though never enacted, we believe it could become law in 2025. Are you ready for its redrawn borders - and its immense wealth potential?

Here's the late changes Republicans made to Trump's big bill

WASHINGTON (AP) — Republicans made several eleventh-hour changes to their massive as they tried to win over GOP holdouts and pass the bill through the House.

Trump's big tax bill has passed the House. Here's what's inside it

WASHINGTON (AP) — House Republicans early Thursday took a major step forward on President Donald Trump’s agenda, approving a legislative package that combines tax breaks, spending cuts, border security funding and other priorities.

The Next Big Thing in AI: Musk's Secret Supplier - Ad

Nvidia soared 500% in the first AI wave. Now, Elon Musk's xAI is igniting the second. With Trump's backing and policy shifts, xAI is poised to dominate generative AI. One small company behind its tech could explode in value-this may be your second chance to ride the AI boom.

SCHD: The Dividend ETF Turning Quiet Compounding Into Long-Term Wealth

Dividend growth investing may not be flashy, but it quietly creates lasting wealth for retirement. SCHD is a standout among dividend ETFs.

Trump Administration Reportedly Weighing Suspension of Habeas Corpus

President Trump's administration is reportedly weighing the possibility of suspending habeas corpus.

U.S. Spies Deployed to Greenland... - Ad

President Trump is dead serious about Greenland. So serious, in fact, that U.S. spies have entered Greenland's interior - to identify people sympathetic to Trump's objectives. If our research is right, he could announce a formal deal on June 15. There's still time to position yourself.

Cathie Wood Just Spent $8.4 Million On This Top Chip Stock (And It's Not NVIDIA)

Ark Invest acquired $8.4 million worth of TSMC shares on Tuesday, May 20, 2025, reflecting confidence in the company's future potential. Other key trades included selling UiPath and buying Nextdoor and Blade Air Mobility.

Social Security Gets A Modern Makeover: Here's What It Means for Your SSN

SSA to launch digital Social Security card this summer, allowing secure online access. Experts hail move but caution about security concerns.

The Most Important "AI Stock" You've Never Heard Of - Ad

The AI revolution is moving faster than anyone expected. But what no one is talking about is the one company AI simply can't exist without. It may be the single most important AI investment, yet most people don't even know its name. For now. The moment Wall Street catches on, this $20 stock could explode.

He was killed in a road rage shooting. AI allowed him to deliver his own victim impact statement

CHANDLER, Ariz. (AP) — There were dozens of statements submitted to the court by family and friends of Christopher Pelkey when it came time to sentence the man convicted of shooting him during a road rage incident. They provided glimpses of Pelkey’s humor, his character and his military service.

Trump's Apple Tariff Threat Hits Stock Hard, But Here's Why iPhones Can't Just Be 'Made in America'

President Trump has demanded that Apple start manufacturing iPhones within the U.S. or be prepared to face a minimum 25% tariff on iPhones produced overseas.

This Tiny Cyber Stock Is Already Live in Saudi, India, UAE - Ad

They're where the budgets are growing fastest. Government partners locked in. Tech already deployed.

China's economy slows in April as trade war blues hit retail sales, housing and investment

China’s economy showed signs of slowing in April as President Donald Trump's took a toll, with retail sales, property and investment coming in weaker than economists had forecast.

iPhones, AI, And Alibaba: Why Apple's China Bet Alarms Donald Trump

Apple's AI partnership with Alibaba for Chinese iPhones faces U.S. backlash over national security and data-sharing concerns.

This Coin Could Surge Like Bitcoin Did Back in 2013... - Ad

A new coin is emerging in the crypto world. And investing in it now could end up like Bitcoin or Ethereum during their first bull runs.

Wave of Crypto Kidnappings in France Raises Security Alarms, Possibly Impacting Presidential Race

France is witnessing a rising wave of kidnappings aimed at cryptocurrency entrepreneurs. The situation is not only damaging the country's reputation but is also becoming a political issue

Chuck Schumer Blasts Trump For Backing AI Chip Sales To Saudi Arabia, UAE: 'This Deal Could Very Well Be Dangerous'

Senator Chuck Schumer warned that Trump-backed AI chip deals with Saudi Arabia and the UAE could risk U.S. tech secrets falling into China's hands, undermining national security and export restrictions.

Elon's Greatest Invention... Hidden in South Memphis? - Ad

Tech legend Jeff Brown recently traveled to the industrial zone of South Memphis to investigate what he believes will be Elon's greatest invention ever... Yes, even bigger than Tesla or SpaceX.

D-Wave Quantum Stock Is Soaring Thursday: What's Going On?

D-Wave Quantum Inc. (NYSE: QBTS) shares are trading higher Thursday after the company posted record first-quarter 2025 financial results and highlighted major technical milestones in commercial quantum computing.

The "Miracle Metal" that Saved 379 Lives - Ad

In a fatal runway collision, one plane had a new "miracle metal" built into its frame-every passenger survived. The other didn't. Now, this 90¢/gram material is being rushed into AI chips, EVs, and defense tech. Only one U.S. company can mass-produce it. Chris Rowe explains why.

Scott Bessent Attempted Assassination: Charged Massachusetts Man Originally Planned To Target Mike Johnson And Pete Hegseth

On Thursday, May 8, 2025, a 24-year-old Massachusetts man was arrested for attempting to assassinate Treasury Secretary nominee Scott Bessent, found with Molotov cocktails and a knife on Capitol grounds.

Airbnb CEO Brian Chesky Reveals Why He Doesn't Do Emails And Early Morning Meetings, Says Silicon-Valley Founders Don't Need To Be 'Miserable'

Airbnb CEO Brian Chesky is rejecting the traditional Silicon Valley grind-set by ditching email, starting meetings at 10 am, and working until 2:30 am. This unconventional approach is also being adopted by other successful CEOs.

AI-Powered Cyber Stock Attacks the Real Threat - Human Error - Ad

88% of breaches happen from human mistakes. This company's IC360 platform is using AI to stop them.

Hewlett Packard, Nvidia Deepen Collaboration On AI Factory Solutions

Hewlett Packard Enterprise enhances NVIDIA AI Computing solutions for full AI lifecycle, with new compute and software offerings and simplified hybrid IT.

Coinbase said cyber crooks stole customer information and demanded $20 million ransom payment

Coinbase, the largest based in the U.S., said Thursday that criminals had improperly obtained personal data on the exchange’s customers for use in crypto-stealing scams and were demanding a $20 million payment not to publicly release the info.

A Better Hedge Than Gold? - Ad

While the whole world is piling into gold as a hedge... White House documents reveal Trump is betting big on a completely under-the-radar resource. This little-known resource is minting 1,600 millionaires every single day... And investors have a rare opportunity to take advantage before everyone else catches on.

Honeywell Deepens Renewable Fuels Push With $2.4 Billion Deal

Honeywell (NASDAQ: HON) to acquire Johnson Matthey's Catalyst Technologies division for $2.4B, expanding portfolio and high-growth opportunities.

What we know and still don't know about a private plane's crash into a San Diego neighborhood

Authorities were investigating why a private plane crashed early Thursday in San Diego, killing two people, damaging homes and igniting cars in the U.S. military's largest housing neighborhood.

The Cross-Chain Giant Set for 1,000%+ Gains - Ad

This multi-chain protocol's volume is exploding while its price is still under the radar. Institutions are moving in fast-get our urgent report before retail wakes up.

Jamie Dimon Says Trump's Tariffs Were 'Too Aggressive,' Warns US Risks Going It Alone Without Measured Trade Strategy

JPMorgan Chase & Co. CEO Jamie Dimon has emerged as a critical voice on President Donald Trump's tariff policies, acknowledging legitimate concerns while cautioning against excessive measures that could isolate the U.S. economy.

Jeff Bezos At Peak Dot-Com Hype Identified A Winning Strategy That Made Amazon Into A 2 Trillion Success Story Today: 'Internet, Shminternet … That Doesn't Matter'

In a 1999 interview, Jeff Bezos dismissed dot-com hype and bet Amazon's future on customer obsession over internet buzz, arguing that great service—not being a "pure internet play"—would ultimately align customer and shareholder interests, a strategy that helped Amazon survive the crash and thrive.

World Economic Forum: "Arguably the Most Exciting Human Discovery Since Fire" - Ad

Sam Altman, Bill Gates, and Mark Zuckerberg are all investing vast sums of money into a radical technology. According to Bloomberg, this could become 10 times bigger than AI, quantum computing, electric vehicles, cryptocurrencies, and robotics combined. And one stock is at the center of it all.

Court rules in favor of the New York Times over texts between an EU chief and a pharma boss

BRUSSELS (AP) — A top European court ruled on Wednesday that the European Commission was wrong to refuse the New York Times access to text messages sent between President Ursula von der Leyen and a pharmaceutical boss during the COVID-19 pandemic.

Germany bans the largest 'Reich citizen' group and arrests 4 leaders

BERLIN (AP) — The German government has banned the largest “Reich citizen” group, an that calls itself the “Kingdom of Germany” and seeks to undermine the country’s democratic order, and arrested four of its leaders.

He's Already IPO'd Once - This Time's Different - Ad

Spencer Rascoff grew Zillow from seed to IPO. But everyday investors missed pre-IPO gains. So he did things differently with Pacaso. They've already made $110M+ in gross profits and reserved the Nasdaq ticker PCSO.

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright 2025 trendadvisor.net
Privacy Policy | Terms of Service