Surviving A Shattered Dream: The Wanda Group

China’s third-largest online travel company is buying the hotel management unit of a former highflying operator now struggling to stay one step ahead of its creditors

Key Takeaways

• Tongcheng has agreed to buy the hotel management arm of Dalian Wanda, adding high-end properties to its growing portfolio of 2,300 managed hotels
• The deal gives Dalian Wanda, a former property and entertainment giant, more cash to meet its debt commitments

It’s not a match made in heaven, at least according to shareholders of Tongcheng Travel Holdings Ltd. (0780.HK), which last week announced it would buy the hotel management, construction and design business of Wanda Hotel Development Co. Ltd. (0169.HK) for 2.5 billion yuan ($342…