Chinese real estate developer Shenzhen New World Group has bought the 451-room Sheraton Universal Hotel for $90m.

Following the acquisition the hotel will operate under the Sheraton brand and will continue to be managed by Rim Hospitality.

The new owner plans to spend $5m in renovating the 20-storey hotel’s pool area, meeting rooms and public spaces.

The previous owner of the hotel, Lowe Enterprises, bought the hotel for $122m in 2007 and spent $25m on improvements, but lost ownership due to the recession last year.

“Given its proximity to Universal Studios, Shenzhen’s strategic purchase could prove one of the best purchases in this economic cycle,” said Jim Butler, chairman of JMBM’s Global Hospitality Group.