Jin Jiang Hotels guarantees €73.5m loan for GDL subsidiary

Shanghai Jin Jiang International Hotels Development (Jin Jiang Hotels) announced it has signed a guarantee agreement with Industrial and Commercial Bank of China Shanghai Bund Branch for a €73.5 million working capital loan for its wholly-owned subsidiary, Groupe du Louvre (GDL). This transaction, effective September 23, 2025, is primarily for refinancing existing debt. The total outstanding guarantee balance for GDL by Jin Jiang Hotels now stands at €287 million.

The guarantee was approved by the company's 10th Board of Directors' 38th meeting and the 2024 Annual General Meeting, which authorized the management to operate within an aggregate guarantee limit of €1,500 million for its Hong Kong, Luxembourg, and GDL subsidiaries. GDL, whose assets totaled €1,596.95 million as of June 30, 2025, has a debt-to-asset ratio exceeding 70%.

The guarantee covers the principal, interest, fees, penalties, and other expenses related to the loan for a one-year term, with Jin Jiang Hotels assuming joint and several liability. The company stated that the guarantee is within controllable risk levels and will not adversely affect its operations or shareholder interests. As of the announcement date, the total external guarantees by Jin Jiang Hotels and its subsidiaries amounted to 9,820,564,700 yuan, representing 63.73% of the company’s audited net assets attributable to shareholders, with no overdue guarantees.