Actis invests $65m in Chinese budget hotel chain

Warburg Pincus is co-investing with the emerging markets specialist in China's 7 Days Inn Group.

Actis has invested $65 million in 7 Days Inn Group, an economy hotel chain in China. Global private equity firm Warburg Pincus is co-investing an undisclosed amount alongside Actis.

Founded in 2005, 7 Days Inn now has more than 260 branches across China, in cities such as Guangzhou, Beijing, Shanghai, Nanjing and Chengdu. It has been the fastest growing company in China’s chain hotel industry for three consecutive years, according to a 2008 survey by the Ministry of Commerce and the Hotel Association of China.

The investment will be used to “drive the expansion of 7 Days Inn’s national hotel network and to optimise its capital”, according to the firm.

In September, Actis acquired Teknicast, a Malaysian aluminium company in a management buyout. Financial details were not disclosed. 

In August, the firm executed a PIPE deal with an investment in Tunisia's Poulina Group Holdings, a business conglomerate listed on the Tunis Stock Exchange. In the same month, it led a consortium of investors to acquire Alstom South Africa, an energy engineering company based in Johannesburg, for $700 million.

Actis manages $1.3 billion of funds in Asia. It has 40 professionals in the region, with offices in China, India, Malaysia, Pakistan and Singapore.