China Life takes $2B stake in Starwood Capital’s US hotels

Company will be lead investor in 280 hotels

New York /
Oct.October 18, 2016 06:18 PM

UPDATED, Wednesday, Oct. 19 at 2:14 p.m. China Life Insurance purchased a $2 billion stake in Starwood Capital Group’s U.S. hotels.

After the sale, the Chinese sovereign wealth fund will be the leading investor in the 280 hotels across 40 states, Bloomberg reported. Starwood Capital Group will continue to serve as an asset manager on some of the properties.

The deal comes as Chinese investors increasingly snap up commercial properties in the United States. For instance, Chinese insurer Anbang Insurance Group, which owns the Waldorf Astoria Hotel, purchased 16 hotels from the Blackstone Group this year for $6.5 billion. The deal closed in September. In August, China Orient Asset Management Corp. paid $143 million to buy a majority stake in four Flatiron District office buildings controlled by the Kaufman Organization.

In the first half of 2016, China-based investors pumped roughly $5 billion into commercial purchases in the U.S., a 19 percent year-over-year jump, according to the Wall Street Journal. [Bloomberg]Kathryn Brenzel

Correction: A previous version of this article claimed that China Life purchased a minority stake in One New York Plaza. It did not; China Investment Corp. bought a minority stake for $700 million.


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)
Hudson Yards megadevelopment inspires a new line of sex toys
Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Building Trades Employers’ Association CEO Lou Colletti and City Planning Commissioner Chair Marisa Lago (iStock)
City bill would force general contractors to get licensed
City bill would force general contractors to get licensed
SL Green CEO Marc Holliday (Getty)
SL Green sees “explosive recovery” for NYC as tenants plan office return
SL Green sees “explosive recovery” for NYC as tenants plan office return
Vornado’s Steve Roth and 888 Seventh Ave (Getty, Google Maps, iStock)
Vornado sues Hongkun USA, seeking $1.1M in rent
Vornado sues Hongkun USA, seeking $1.1M in rent
Mauricio Umansky, Rainy Hake Austin and Robert Reffkin (Getty)
The Agency sues Compass for blocking exec from recruiting former colleagues
The Agency sues Compass for blocking exec from recruiting former colleagues
SmartRent's Lucas Haldeman and Fifth Wall's Brendan Wallace (iStock)
What SmartRent’s $2.2B SPAC means for multifamily
What SmartRent’s $2.2B SPAC means for multifamily
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...