One of China's largest hotels group has landed what is considered the country's largest deal yet since the China Securities Regulatory Commission eliminated the need last October for administrative approval of cash acquisitions by listed companies.

Shanghai Jin Jiang International Hotels Development Co Ltd has agreed to buy Europe's second-largest hotel group Groupe Du Louvre outright from the US investment firm Star wood Capital Group for up to 1.21 billion euros ($1.42 billion), according to a stock exchange filing from Jin Jiang.

The all-cash acquisition, first revealed in November, will be completed through Star wood Capital's affiliate Star SDL Investment Co. No more than 70 percent of this deal will be financed by bank loans, according to the filing.

In June last year, Chinese private equity firm Hony Capital revealed it was spending 15 billion yuan ($246 million) on a 12.43 percent stake in Shanghai Jin Jiang International Hotels Development Co Ltd, becoming the second-largest shareholder after parent company Shanghai Jin Jiang International Hotels (Group) Co Ltd.

Established in 1976, Louvre Hotels Group has a network of more than 1,100 hotels in 46 countries. There are seven brands operating under the group, including Premier Classe, Campanile, Kyriad, and Golden Tulip. Its profit before extraordinary items grew last year to 62.6 million euros from the 50.8 million euros the year earlier.

Jin Jiang's relationship with the Louvre Hotels Group dates back to November 2011 when the two established a partnership introducing a co-branding program to selected hotels in major cities of China and France.

Between July 1, 2013 and June 30,2014, Jin Jiang sales revenue surged from 2.8 billion yuan to 6.6 billion yuan, with its earnings before interest, tax and amortization nearly doubling from 1 billion yuan to 1.9 billion yuan.

Industry insiders say the acquisition will help Jin Jiang enhance its profitability, particularly at a time when Chinese tourists are showing an increasing preference for traveling to European destinations.

According to a recent survey by China's largest online travel agency Ctrip, the country's tourists are expected to be more willing than ever to travel abroad during the up coming Spring Festival.

Over half of respondents said they would be going overseas during the country's biggest annual holiday. Apart from the trips to warmer places such as Thailand, Bali or the Maldives, Europe was their most-favored destination.

Chinese investors have been snapping up renowned hotels on foreign soil. Last year, Chinese insurer Anbang Insurance Group Co bought New York's celebrated Waldorf Astoria hotel.

According to are port released by Thomson Reuters, the amount of mergers and acquisitions involving Chinese companies hit a record-high of $396.2 billion last year since 1982, up 44 percent year-on-year.