A Hainan hotel and tourism company will sell B shares on the Shenzhen stock exchange to finance its expansion. The 80 million B shares would represent 25 per cent of the enlarged share capital of Hainan Dadonghai Tourism Centre (Holdings), sources said. Hainan Dadonghai has interests from hotel ownership and management to the operation of travel agency and watersport and entertainment facilities. The share sale, underwritten by China Guotai Securities and Seapower Securities, will be launched in Hong Kong tomorrow with an underwriting agreement to be signed on Sunday. Trading in the shares is expected to start next month. Four-star South China Hotel is the only hotel owned and operated by Hainan Dadonghai, which also manages the Seaside Inn and Seaside Hotel. The hotels are all in Sanya. Proceeds of the sale will be used to build an annex at the South China Hotel, increasing the number of rooms to 450 from 238 by the end of next year. The South China Hotel had an average occupancy rate of 74.7 per cent in the past three years, outstripping the sector's average of 61 per cent on the island province last year. There are 195 hotels on Hainan, providing about 20,762 rooms. The South China Hotel's occupancy rate reached 81 per cent in the first quarter of this year. Hainan Dadonghai has a marine amusement park providing watersport facilities situated next to the the South China Hotel. The company's travel business is operated through Hainan Hong Kong Macau Travel Co, which is authorised to handle domestic and foreign tours. Hainan Dadonghai also owns the Shun An Entertainment Centre which operates about 150 electronic slot machines.