Photo/Zhang Yun (NBD)

Jan. 22 (NBD) -- The long search of China Eastern Airlines, one of China's three top carriers, for a strategic investor for its tourism subsidiary seems to come to an end. 

The airline is looking for a cash deal for a 65 percent stake in Shanghai Airlines Tours International (Group) Co., Ltd. ("SAT Group"), according to a statement made by the travel agency through the China Beijing Equity Board.

Wanda Group, Hainan Airlines, and Fosun International all have approached the tourism company, but the most likely buyer will be real estate giant Greenland Group, according to news outlet Yicai. 

With years of operations in the travel sector, SAT Group has developed a great reputation, but hasn't built prominent advantages over well-established travel agencies like China International Travel Services Limited, China Travel Service, China Youth Travel Service as well as emerging online travel platforms. 

According to the statement, the Shanghai-based tourism company lost approximately 28.5 million yuan (4.2 million U.S. dollars) in 2015 and 18.0 million yuan (2.7 million U.S. dollars) in 2016. 

In the year of 2017, it made a turnaround and reported profit of around 26.8 million yuan (3.9 million U.S. dollars). However, it slid into loss again, posting a loss of roughly 13.0 million yuan (1.9 million U.S. dollars) for the January-November period of 2018. 

Greenland's interest in the SAT Group deal springs from the property developer's efforts in extending its reach to the culture and tourism industry. 

Last October, Greenland established three industrial groups centered on large-scale infrastructure, business and trade, as well as hotels and tourism. In a push to build an industrial ecosystem focused on hotels, travel and conventions and exhibitions, the property developer plans to nurture a string of hotel, travel, and convention brands and to integrate upstream and downstream resources along the industrial chain through investment, merger or acquisitions.

If Greenland succeeded in getting the controlling right over SAT Group, it could be interpreted as part of the company's strategy of improving its entire culture and tourism industrial chain, said Zhao Huanyan, chief knowledge officer and senior economist at Huamei Hotel Consulting.

Greenland is not the first large-scale enterprise that has shifted focus to culture and tourism. 

Wanda Group is going full steam ahead to expand its footprint in the segments through projects like Wanda Resort, while New Century Tourism Group is actively creating a comprehensive culture and travel project, including a theme park. 

As the Chinese housing market was stagnant in recent years, many real estate companies have begun their business transformation journey, and culture and tourism are attractive sectors to them, Zhao said. However, to win recognition of consumers emotionally, culture and tourism projects have to integrate appropriate themes and contents, he added.

Email: lansuying@nbd.com.cn