Ocean Link, a private equity firm focused on the fast-growing travel and tourism sector in China, has formed a partnership with Ctrip, the largest online travel agency in China, and General Atlantic, a growth equity firm.
Founded in early 2016, Ocean Link deploys both RMB- and USD-denominated funds to invest strategically and selectively across the broad value chain and sub-verticals of the travel and tourism industry in China including hotels and resorts, attractions, online and offline travel agencies and operators, transportation services, and related business solutions providers.
The firm's initial investments include eLong, a mobile and online travel agency in China, Mind Education, a provider of educational tours and summer camps, Joint Wisdom, a full solution data analytics services provider for China's hotel industry, and Ruby Hotels, a Europe-based hotel chain leading the "lean luxury" concept with expansion plans to Asia.
As a result of the new strategic partnership, Ctrip and General Atlantic both have the right to appoint a director to the board of Ocean Link.
"The travel and tourism sector in China is at a pivotal period of growth. The industry's ongoing transition will provide Ocean Link with ample opportunities to bring capital and operational expertise to innovative companies serving the rising number of travellers in this market. Leveraging the insights and experience of Ocean Link's investment team and the support from Ctrip and General Atlantic, we will aim to identify attractive investments in the rapidly expanding travel and tourism sector," says James Liang, co-founder, chairman, and chief executive officer of Ctrip.
Liang founded Ctrip in 1999 and it is now the largest online travel agency in China providing accommodation reservation, transportation ticketing, packaged tours, and corporate travel management.
"General Atlantic is pleased to bring our global expertise and deep experience working with growth companies to our partnership with Ocean Link and its portfolio companies. By combining the team's deep local reach and extensive industry experience with General Atlantic's strong investment acumen and proven track record of success, we believe Ocean Link is well positioned to capture China's growth in this industry," says Eric Zhang, managing director and head of China at General Atlantic.
General Atlantic has been investing in China since 2000. It has partnered with several global companies operating in the travel and tourism sector including Airbnb, Aimbridge Hospitality, Decolar, FlixBus, IBS, Priceline, Smiles, and Uber.
"As increased consumption and changing consumer habits continue to shift China's economic landscape, there is an immense opportunity for the travel and tourism sector to evolve. We are excited to welcome our strategic partners, Ctrip and General Atlantic, which bring strong investment, sector, and operational expertise to our business and, most importantly, to our portfolio companies," says Tony Jiang, partner of Ocean Link.
China's tourism sector has grown steadily over the past decade as Chinese nationals increase their travel both in and out of the country. According to data released by the China National Tourism Administration earlier this year, from 2014 to 2015 the total number of Chinese residents travelling domestically rose 10.5 per cent to 4 billion, while the total number of Chinese residents travelling internationally rose 12 per cent to 120 million.
The total number of Chinese residents travelling internationally is expected to double from 120 million in 2015 to 220 million in 2025, according to Goldman Sachs Global Investment Research from November 2015.
