Starwood Capital Group sold a stake in a US$2 billion portfolio of U.S. hotels to a group led by China Life Insurance Co. Ltd.
In a statement, Starwood Capital said China Life will be the lead investor in the properties, with sovereign-wealth funds and others also owning a piece of the 280 select-service hotels in 40 states.
“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. “With this select-service hotel portfolio, China Life has an efficient vehicle for investing in the United States economy as a whole—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 organizations, we look forward to working with China Life on additional opportunities—across a wide range of real estate asset classes—in the years to come.”