Hony Capital, one of China's biggest private equity firms, has agreed to buy a 15 billion yuan ($246 million) stake in Shanghai Jin Jiang International Hotels Development Co, the hotel company said on Thursday.

Hony Capital, which manages about $7 billion, will buy 100 million shares in Shanghai Jin Jiang at 15.08 yuan a share, a 23 percent discount to the company's closing price on Thursday of 19.55 yuan, the company said.

That will give Hony Capital a 12.43 percent stake in Shanghai Jin Jiang, making it the biggest institutional investor in the hotel company, according to Thomson Reuters data.

The deal comes amid growing private equity interest in China's property developers and managers, as their sources of capital tighten..

The deal has approval from China's commerce ministry, but still needs a green light from China's securities regulator.