LONDON • China’s Cindat Capital Management is joining an acquisition of QHotels Group valuing the UK hospitality company at more than £500 million (RM2.78 billion), people with knowledge of the matter said.

Cindat, which focuses on overseas property deals, is negotiating a joint purchase of QHotels with UK investment firm Aprirose, according to the people, who asked not to be identified because the information is private. Aprirose, which was previously pursuing the acquisition on its own, now plans to take a 50% stake in QHotels while Beijing-based Cindat would hold the remainder, the people said.

The suitors aim to reach an agreement with QHotels’ owners, Bain Capital Credit and Canyon Partners, in the next few weeks, one of the people said. QHotels runs four-star hotels catering to golf weekends and spa retreats, as well as accommodations for weddings and conferences.

QHotels, founded in 2003, has a portfolio of 26 hotel properties across the UK, according to its website. Bain Capital Credit and Canyon Partners invested in QHotels in 2014, when they bought a portfolio of QHotels loans during Irish Bank Resolution Corp’s liquidation proceedings.

Representatives for Aprirose, Bain and Canyon Partners declined to comment. An official in Cindat’s Beijing headquarters said she couldn’t provide an immediate comment.

Cindat, backed by China Cinda Asset Management Co, agreed to buy 70% of seven Manhattan hotels from Hersha Hospitality Trust for US$571 million (RM2.4 billion) last year. It plans to diversify into warehouses and student housing in developed markets like the US, the UK and Australia. — Bloomberg