China Lodging Signs MoU With India-based OYO; To Invest $10 Mln - Quick Facts

(RTTNews) - China Lodging Group, Ltd. (HTHT), a hotel operator and franchisor in China, announced Wednesday that it has entered into a five-year Memorandum of Understanding or MoU on September 8 with Oravel Stays Private Ltd. Or OYO, an India-based hospitality company.

The deal is to facilitate and strengthen collaboration to build a global market leading hospitality business.

Under the MoU, China Lodging and OYO will explore opportunities for mutual collaboration in four fields. These include knowledge and technology sharing, strategic alliances and partnerships in various areas, new venture partnership opportunities, and investment.

As part of this collaboration, China Lodging has agreed to make a $10 million equity investment in OYO to become a minority shareholder of less than 5%.

China Lodging and OYO will also discuss collaboration in a variety of other areas of mutual interests pursuant to the MoU.

Jenny Zhang, CEO, China Lodging, said, "The partnership will draw on the strengths of China Lodging Group's visionary and experienced management team, market leadership through a multi-brand strategy, extensive hotel operations expertise and strong loyalty program and OYO's advanced technologies in the hospitality industry that enable transformation of hotel operations."