Core Viewpoint - Tongcheng Travel has acquired 100% equity of Wanda Hotel Management for approximately 2.49 billion yuan, marking a significant acquisition in the hotel industry, with the aim of enhancing its competitiveness in the high-end hotel sector [5][10]. Group 1: Acquisition Details - The acquisition involves 204 high-end hotels under Wanda Hotel Management, which includes brands like Wanda Ruihua and Wanda Wenhua, with a total of over 40,200 rooms and 376 hotels signed for future openings [5][7]. - The transaction price of 2.49 billion yuan corresponds to an estimated valuation multiple of about 9.5 times the adjusted EBITDA for 2023, which is competitive compared to other hotel groups [8][10]. - This acquisition is seen as a strategic move for Tongcheng Travel to strengthen its position in the high-end hotel management market, which is experiencing rapid growth [10][11]. Group 2: Market Context and Strategic Implications - The hotel management market in China is expected to grow, and Wanda Hotel Management has a well-established brand portfolio and experienced management team, which will enhance Tongcheng Travel's competitive edge [10][11]. - The acquisition allows Tongcheng Travel to move beyond being a mere OTA platform and extend its reach into the offline hotel business, thereby gaining better control over the supply chain [10][11]. - The high-end hotel segment is considered a critical area for competition, with significant potential for revenue growth, making this acquisition a timely and strategic decision [11][13]. Group 3: Future Integration and Synergies - Post-acquisition, the focus will be on how Tongcheng Travel can integrate Wanda Hotel Management's team and leverage its existing user base to enhance operational efficiency [14]. - The successful collaboration between the teams will be crucial for achieving synergies and maximizing the value of the acquisition [14].