One of China’s largest dumpling chains has been sold to a local hotel group.
Da Niang Dumplings, previously owned by private equity company CVC Capital Partners, has been bought by Shanghai-based hotel group GreenTree Inns Hotel Management Group.
Three years ago, when CVC took control, Da Niang Dumplings boasted more than 440 restaurants across China. It operates an integrated business model, manufacturing dumplings, then preparing and serving them at its restaurants, which target the budget end of the market. This is the first foray into food retailing for GreenTree, which manages and franchises more than 2500 hotels inside and outside China.
CVC is believed to have exited the business in the second half of last year after a fractious relationship with founder Wu Guoqiang. Last February, Wu publicly accused CVC of poor management leading to revenue declines of 10 per cent in 2014 and again in 2015.