HNA Group, China's fourth largest airline group, and Accor SA, Europe's biggest hotel operator, are leading potential bidders in the possible takeover of Carlson Rezidor Hotel Group, owner of the Radisson and Park Plaza brands, China Daily reported.
Citing sources by Bloomberg, the report said that the sale could cost about $2 billion and the deal may be done by the middle of the year.
According to the sources, Carlson is also looking into other options for the assets and no decision about the sale has been made yet. HNA and Accor both refused to comment about the issue.
In 2014, Accor had signed a strategic supplier-cooperation deal with HNA Hospitality Group, the hotel subsidiary of HNA Group. In recent months, HNA and Accor, which owns the Sofitel and Ibis brands, have been active in hotel and travel industry acquisitions.
HNA Hospitality is one of China's biggest hotel companies, managing more than 90 hotels in 30 domestic and overseas cities, with 30,000 rooms, the report said
In December, Accor bought Canada's FRHI Holdings Ltd., parent of the Fairmont, Raffles and Swissotel hotel chains, in a deal worth $2.9 billion. At least 155 hotels in the three brands including landmark properties Raffles Singapore, The Savoy in London and Fairmont Le Chateau Frontenac in Quebec were covered by the purchase.
The report added that Fastbooking, a hotel-reservation service, was also acquired by Accor earlier this year.
On the other hand, HNA continued expanding its global business across the aviation, airport management, logistics and tourism sectors and spent as much as 36.9 billion yuan ($5.65 billion) on mergers and acquisitions last year.
In November, HNA, being the biggest shareholder in Spanish hotelier NH Hotel Group SA, agreed to buy 23.7 percent stake in Brazilian airline Azul Linhas Aereas Brasileiras SA for $450 million.
The Chinese company also acquired Swissport International Ltd., the airport luggage handler, from PAI Partners SAS for 2.73 billion Swiss francs ($2.74 billion) last year, and was one of the bidders for London City Airport, but lost out to Ontario Teachers' Pension Plan Board.
Li Lei, deputy director of Minzu Securities Co., said that HNA's ambitious overseas expansion is part of its efforts to reduce business risks.