This research investigates how Huazhu Group’s acquisition of Deutsche Hospitality (DH) in 2019 has influenced its domestic operations in China and reshaped its global business strategy. As one of China’s largest hotel chains, Huazhu’s expansion into Europe through DH offers a unique case to explore the challenges and opportunities of cross-border mergers in the hospitality sector. The study will analyse whether the acquisition strengthened Huazhu’s competitive edge in China’s saturated market, how operational synergies (e.g., technology integration, brand differentiation) were achieved, and whether the move aligns with China’s broader economic goals of globalising its service industries. By analysing financial reports, industry data, and customer feedback, this research aims to identify whether the acquisition strengthens Huazhu’s competitive position domestically while balancing international risks, and also to provide actionable insights for companies pursuing similar international mergers.