Sale Signals Shuffle for Budget Hotel Sector
Morgan Stanley is selling its majority stake – along with the rest of the equity – in China's fifth-largest budget hotel chain, Shanghai Motel Chain Co.
A bidding process for 100 percent of the nationwide network of 276 hotels and more than 40,000 rooms began in early February when several rival hoteliers and private equity funds expressed interest.
Morgan Stanley's financial consultant, Goldman Sachs, says the company is worth about US$ 1 billion – a price some call unreasonably steep. Most potential buyers have been tight-lipped about the bidding.
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