Warburg Pincus, which closed its first dedicated real estate fund in October, has acquired a 20 percent stake in 7 Days, a budget hotel chain in China with ambitious expansion plans.
The private equity firm did not disclose further transaction details. The deal is similar to an investment Warburg Pincus made earlier this year in India. In August, Warburg Pincus invested $60 million (€46 million) in Lemon Tree, a local mid-priced hotel operator, in its first deal in India’s hospitality sector.
With a focus on Southeastern China, 7 Days operates 17 hotels and has another 14 under renovation or under lease contract, according to a statement. The company plans to expand into other locations that capture both business and leisure travelers. 7 Days expects to increase the number of hotels it operates to more than 150 by 2009, with at least ten planned for each major city in China, according to the statement.
In Asia, Warburg Pincus’ real estate investment professionals are based in Hong Kong, Beijing, Mumbai and Tokyo.