NH Hotels has entered into a "major strategic agreement" with China-based HNA Group, which the Spain-based operator said would strengthen its "financial solvency".

HNA Group has acquired a 20 per cent stake and two members on the board of NH Hotels as part of the deal, which is valued at EUR431.6m (£386.2m). It was also revealed that the two companies could establish a hotel management company in China, which would see NH Hotels manage some of HNA Group's existing properties.

NH Hotels chair Mariano Perez Claver said: "I would like to emphasise the great commercial value, which strengthens the balance sheet of the group and at the same time stands for a far-reaching strategic step for NH Hotels. "The alliance we are now arranging means that our company will have the opportunity to enter a market which has huge potential, China."