H&Q to finance Hilton Hotels in China

RREEF, the alternative asset management arm of Deutsche Bank, has formed a joint venture with private-equity group H&Q Capital to bring the Hilton brand into mid-market hotel development in China. Both parties hold a 50% stake in the new JV and will contribute a matching amount of capital that forms the $550 million initial investment fund, which will be used to develop 25 Hilton Garden Inn hotels in over 15 growing cities around the Yangtze River Delta region, including Beijing, Shanghai and Tianjin. Further developments will be expanded into other areas in China once it has reached a critical mass of customers.