What about the debt of the acquired hotel?

Legal analysis: the debt of hotel acquisition is usually repaid by the merged hotel. After the hotel is acquired, the previous arrears will be inherited by the merged company, but a written agreement can be reached with the creditors before the acquisition to reach an agreement to reduce the amount of debts of both parties. If the original company is about to go bankrupt, the negotiated agreement is beneficial to both parties.

Legal basis: Article 67 of the Civil Law of People's Republic of China (PRC), if a legal person is merged, its rights and obligations shall be enjoyed and assumed by the merged legal person. Where a legal person is divided, its rights and obligations shall be jointly claimed by the divided legal person, unless otherwise agreed by the creditor and the debtor.

Provisions of the Supreme People's Court on Several Issues Concerning the Trial of Civil Dispute Cases Related to Enterprise Restructuring

Article 31 After an enterprise is absorbed and merged, the debts of the merged enterprise shall be borne by the merged party.

Article 32 When an enterprise is absorbed or merged, it shall refer to the relevant provisions of the Company Law and notify its creditors by public announcement. After the enterprise is absorbed and merged, if the creditor sues the merging party for the enterprise debt concealed or omitted by the original asset manager (investor) of the merged enterprise, and if the creditor declares his creditor's rights within the announcement period, the merging party may recover from the original asset manager (investor) of the merged enterprise after assuming civil liability. If the creditor fails to declare his creditor's rights within the announcement period, the merging party shall not bear civil liability. The people's court may notify creditors to sue the original asset manager (investor) of the merged enterprise separately.

Article 33 After a newly established enterprise is merged, the debts of the merged enterprise shall be borne by the newly established merged enterprise as a legal person.

Article 34 After the merger or newly-established merger of enterprises, the merged enterprise shall go through the cancellation of industrial and commercial registration, and if the creditor brings a lawsuit against the merged enterprise, the people's court shall, according to the specific circumstances after the merger, inform the creditor of the additional liability subject and order the liability subject to bear civil liability.