海航

Concerns over leverage as HNA Group builds empire

HNA Group’s $6.5bn bid for a 25 per cent stake in the Hilton hotel chain has cemented its reputation as one of China’s most acquisitive groups.

In less than two years the privately controlled company has announced foreign and domestic transactions worth more than $33bn — half spent offshore, according to data provider Dealogic — as it builds a global empire with interests spanning aviation, logistics and tourism.

Begun in 1989 as a private airline on the tropical island of Hainan, HNA’s buying spree shows no sign of slowing. Founder Chen Feng, a former employee of China’s state civil aviation administration, has transformed Hainan Airlines, the group’s flagship company, from a two-jet operation into the country’s fourth-largest airline and has built a sprawling conglomerate.

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