(Yicai Global) Jan. 5 -- Chinese property developer Greenland Holdings plans to sell a majority stake in its hotel management unit for CNY624 million (USD91 million) as part of its asset-light strategy

Greenland Digital Technology will sell its 52 percent of Shanghai Greenland Hotel Management to Minyoun Hospitality, a Chengdu-based hotel chain operator, its parent company said yesterday.

Greenland Hotel Management was founded in January 2019, with Greenland Digital and Greenland Financial Technology Group owning 70 percent and 30 percent, respectively

After the stake sale, Shanghai-based Greenland will inject assets from its hotel management and other related subsidiaries into Greenland Hotel Management, it added.

The deal is expected to bring income of about CNY610 million to Greenland, the company noted. And as Greenland Hotel Management will be excluded from its earnings results after the transaction, the value of Greenland’s remaining 48 percent stake in the unit will be recalculated based on fair value, bringing Greenland a paper gain of CNY560 million, it said.

Greenland faces debt pressures because of the downturn of the Chinese real estate market. In November, it said it applied to roll over its nine overseas bonds worth a total of USD3.2 billion.

Greenland logged a CNY6.9 billion (USD1 billion) net profit in the first three quarters of 2022, down 38 percent from a year earlier, according to its most recent trading figures. Revenue fell 28 percent to CNY306.1 billion (USD44.5 billion).

Editor: Futura Costaglione