Starwood Capital Group, a leading global private investment firm, announced that China Life Insurance Co. Ltd., China’s largest life insurance company, has invested approximately $2 billion in select-service hotels in the United States with Starwood Capital Group.
China Life will serve as both the anchor and leading investor for the portfolio alongside a group of sovereign wealth funds and other investors. The portfolioâ€”spanning locations in 40 statesâ€”comprises 280 select-service hotels affiliated with premier global hospitality brands.
“We are honored to have been given the opportunity to serve as stewards of China Life’s capital, and thrilled to embark on a partnership that represents a first-of-its-kind relationship for our Firm,” said Barry Sternlicht, chairman and CEO of Starwood Capital Group.
“With this select-service hotel portfolio, China Life has an efficient vehicle for investing in the United States economy as a wholeâ€”as these assets offer access to strong markets, strong cash-on-cash yields, scale and diversification. With our shared values and complementary investment approaches of our two organisations, we look forward to working with China Life on additional opportunitiesâ€”across a wide range of real estate asset classesâ€”in the years to come.”
Over more than two decades, Starwood Capital Group has acquired approximately 2,600 hotels worldwideâ€”from economy to luxury propertiesâ€”and operated hotel platforms including Groupe du Louvre, TMI Hospitality, InTown Suites and the recently rebranded U.K. portfolio, consisting of three separate hotel companies, together now The Principal Hotel Company.
The Firm has also created or expanded a number of world-class hotel brands, including W Hotels, St. Regis Hotels, 1 Hotels and Baccarat Hotels & Resorts.