Wanda Hotel’s shares soar on Wang Jianlin’s plan to turn it into a hotel and theme park manager

Chinese magnate Wang Jianlin, fresh from an epic sale of 77 of his hotels and 13 theme parks to pursue what he calls an “asset light” business model, has injected the management and operations of his erstwhile assets into one of his Hong Kong affiliates, as he rearranges his corporate portfolio after closing China’s largest real estate disposal.

The reshuffling turns Wanda Hotel Development into a professional manager and operator of theme parks and hotels. Its shares surged after the announcement, soaring by as much as 40.5 per cent to as much as HK$1.63 in Hong Kong, the highest intraday level in more than two years. Shares changed hands recently at HK$1.44.

Dalian Wanda Group, the closely held conglomerate founded by Wang almost three decades ago, has ballooned into one of China’s biggest global asset buyers since 2015. From a property developer, it’s expanded into the world’s largest cinema operator, a luxury yacht builder, an athletics company and owner of the Iron Man triathlon races.

It’s come under the scrutiny of Chinese authorities in recent months, over concerns of its borrowings and the exposure of China’s banks to its debt.

Last month, Wang sold the ownership of his 77 hotels and 13 theme parks to Sunac China and Guangzhou R&F Properties Co. for a combined US$9.4 billion to raise funds to repay loans, in the largest sale of property assets in mainland China’s corporate history.