China's Anbang to acquire Strategic Hotels & Resorts for $6.5bn
Chinese company Anbang Insurance Group has agreed to purchase Strategic Hotels & Resorts for approximately $6.5bn.
This comes almost three months after equity firm Blackstone Group privatised the luxury resort company for roughly $6bn, reported Bloomberg. Anbang is to pay $450m more than what Blackstone paid for the hotel company last December.
Strategic Hotels & Resorts has 16 properties across the US, comprising Ritz-Carltons in Half Moon Bay and Laguna Niguel, California; Hotel del Coronado in San Diego; and JW Marriott Essex House in Manhattan; and the Four Seasons resorts in Scottsdale, Arizona, and Jackson Hole, Wyoming.
Investors from China have been acquiring properties overseas to offset slow growth at domestic market.
Investment by Chinese firms into the US hotel industry has been steadily growing since 2011, reported Reuters.
Last February, Beijing-based Anbang acquired New York's landmark property Waldorf Astoria for $1.95bn. The hotel was sold by Hilton Worldwide Holdings, which was majority owned by Blackstone at the time.
Anbang has also acquired or agreed to acquire several buildings in Canada and New York, reported Bloolmberg.
Image: The Waldorf Astoria Hotel at New York City. Photo: courtesy of Reading Tom via Wikipedia.