JD to create a new research and commercial centre after purchasing Beijing hotel in a $400mn deal
China’s second largest e-commerce company, JD, has closed a deal to buy the Jade Palace Hotel in Beijing, China, for US$400mn.
JD hopes to transform the five-star property into a new innovation and recruitment centre.
Under the deal, JD.com has acquired 100% ownership of the hotel, which is located near Beijing's Zhongguancun technology hub as well as some of the capital's leading universities.
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A JD spokesman said that “the purchase of the hotel will serve JD.com’s long-term development”.
“The hotel will be transformed into a space mainly for technology innovation and commercial business," the firm added.
The investment comes shortly after JD restructured its e-commerce business and created a new chief executive’s office.
Through the restructuring, JD Mall will be divided into three core segments: a unit responsible for understanding customer behaviour and market changes analysis, a unit which will provide customer services and another unit to handle infrastructure building, according to reports by the South China Morning Post.
Recently, JD.com has also announced a share buyback programme whereby it plans to repurchase up to $1bn of its shares over the next year.
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