Posted on 03/12/2016 8:45:08 PM PST by Steelfish
Chinese Insurer Acquiring Santa Monica Resort, Hotel del Coronado In $6.5-Billion Deal
The Loews Santa Monica Beach and the historic Hotel del Coronado near San Diego are being acquired by a Chinese insurance company as part of a $6.5-billion deal.
Blackstone Group, a New York private equity firm, has agreed to sell its Strategic Hotels & Resorts Inc., which owns 16 luxury properties, to Anbang Insurance Group, a person familiar with the transaction said Saturday
The portfolio, according to Strategic's website, includes the Santa Monica hotel and the famed Coronado hotel, as well as two other Southern California properties -- the Montage Laguna Beach and the Ritz-Carlton Laguna Niguel.
There are three properties in the Bay Area: the Ritz-Carlton Half Moon Bay, the Four Seasons Hotel in East Palo Alto and the Westin St. Francis in San Francisco.
Beijing-based Anbang has been investing in luxury U.S. hotel properties, including its acquisition last year of the Waldorf Astoria in New York for $1.95 billion from Hilton Worldwide Holdings.
(Excerpt) Read more at latimes.com ...
Meanwhile any American company wanting to invest in China, must get a majority Chinese owner, to partner with.
So they are not in fact, buying anything.
That is my understanding.
Future generations will have a crap load of debt to pay off without any earning assets left.
“That money is going to come back somehow.”
Well, somebody just got $6.5 billion of it back. Although I’m guessing in another 100 years most of the property in the U.S. will be owned by the Chinese. And then they can declare “We Won!”
Here we go again. I wonder if anyone is in the market for Pebble Beach?
Ah-so.
Hotel del Coronado is right next to a major Navy and Air Force Base. I toured the hotel a few months ago and it is beautiful. Now why would the Chinese want to be so close to a military base?
This sounds exactly like the highly leveraged Japanese investors who started buying trophy USA properties, like the Pebble Beach Country Club, in the 1980’s.
By 1990, the Japanese stock market and Japanese land values were beginning to crash, and most Japanese investors had to unload their USA properties at fire sale prices to raise cash.
The Japanese ,got their hair taken , and the Chinese will too. For an amusing tale, read about the Japanese buying Rockefeller Center in NYC.
You remind me of the people who collectively freaked out when a Japan se firm bought Rockefeller Center. All the shrill voices in the eighties and nineties convinced we’d all be speaking Japanese by now.
Nothing to see here, move along...
And agree to a technology transfer if they are a high tech investor.
Foreigners are buying up US debt - which has returned trillions to the US economy and made interest rates much lower than they would otherwise have been for US consumers and businesses. How is that not a good thing?
Re: “Rockefeller Center”
I actually wrote that in my original post.
Then, I started thinking they bought the Chrysler Building or the Empire State Building instead, and I didn’t feel like researching it, so I deleted it.
One thing for sure - anyone who borrowed money to invest in USA real estate just before the S&L crisis took a HUGE hit financially.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.