Hainan Meilan International Airport Company Limited (Meilan Airport, 00357) has mandated Hainan Airport Infrastructure’s wholly owned unit, Jinrun Hotel Management, to operate Haikou Meilan International Airport Hotel under a newly signed Airport Hotel Entrusted Management Agreement dated 23 June 2026. The contract runs from its commencement date to 31 December 2028.
Under the agreement, Jinrun Hotel Management receives full operational control of the 1,900-room facility, covering room-rate setting, catering, marketing and day-to-day management. All operating expenses remain subject to review and approval by Meilan Hotel Investment, Meilan Airport’s wholly owned subsidiary, which may appoint owner and financial representatives to monitor budgets, contracts and safety compliance.
Compensation is performance-linked. The annual entrusted-management fee equals “Excess Profit Sharing” multiplied by an “Adjustment Factor”: • Excess Profit Sharing: (Current-year net operating profit minus previous-year net operating profit) × tiered sharing rates—50%/60%/70% (2026), 60%/70%/70% (2027) and 70%/70%/70% (2028) across rising RMB1 million profit bands. • Adjustment Factor: 1.0 if revenue exceeds 95% of the prior year, 0.9 for 90%–95%, 0.8 for 85%–90%, and 0 (agreement terminates) if revenue falls to 85% or below.
Annual management-fee caps are set at RMB 5.25 million for the partial year 2026, RMB 5.58 million for 2027 and RMB 3.45 million for 2028, totalling RMB 14.28 million. No historical comparatives exist as this is the first such mandate between the parties.
Because Jinrun is an associate of controlling shareholder Hainan Airport Infrastructure (62.38% stake in Meilan Airport), the arrangement constitutes a continuing connected transaction under Hong Kong Listing Rule 14A. The highest applicable percentage ratio exceeds 0.1% but remains below 5%, triggering disclosure and annual-review requirements while exempting the deal from circular and independent shareholder approval obligations.
Meilan Airport cites declining revenue per available room, intensified local competition and asset ageing as catalysts for outsourcing management. Jinrun, billed as the largest hotel-management platform in Hainan Free Trade Port, oversees five hotels and one luxury development project, bringing established operational, financial and safety systems alongside broad distribution channels.
The Board has approved the agreement; four directors associated with Hainan Airport Infrastructure abstained from voting. Internal controls include benchmarking Jinrun’s fees against independent operators, ongoing cap monitoring by Meilan Hotel Investment’s finance department, and annual reviews by independent non-executive directors and external auditors.