China-based Sunshine Insurance Group has announced plans to buy the Baccarat Hotel in New York City from Starwood Capital Group in a deal worth more than $230m.
Starwood Capital Group is said to have constructed the Baccarat Hotel & Residences luxury hotel with the New York-based real-estate developer Tribeca Associates. Starwood will continue to manage the 114-room property, which is expected to be opened in March.
The hotel is located on West 53rd Street and features 15,000 pieces of French crystal stemware, as well as chandeliers.
Media sources reported that the hotel is housed in a 50-storey skyscraper and offers amenities including a spa, and a bar.
According to real-estate brokers and analysts, companies in China see luxury hotels as long-term investments in major global capitals and can provide steady income during a period of low interest rates.
JLL global hotel group head of the Americas Gilda Perez-Alvarado said recently that the Chinese Government has liberalised new set of rules.
The companies in China have an option to invest up to $1bn as per the new rules, without obtaining approval from the government, The Wall Street reported.