Posted on 12/18/2014 8:52:39 PM PST by Steelfish
Chinese Firm Buys Los Angeles Airport Marriott For $160 million
The Los Angeles Airport Marriott, which sold for $160 million, has 1,004 rooms in 18 stories. The buyer is expected to make about $35 million worth of improvements. (Asia Pacific Capital Co.) By ROGER VINCENT
The Airport Marriott is one of the largest hotels in Los Angeles County XLD Group also bought the 487-room Torrance Marriott South Bay hotel from DiamondRock late last year
A Chinese real estate developer has purchased the vast Los Angeles Airport Marriott for $160 million and vowed to make substantial improvements.
It was the largest hotel sale of the year in Los Angeles County, brokers said, and a sign that the appetite for Southern California properties remains strong among Chinese investors.
Sichuan Xinglida Group Enterprises Co., which has built numerous mixed-use projects in mainland China, bought the hotel through its U.S. subsidiary, XLD Group. The seller was DiamondRock Hospitality Co., a Maryland real estate investment trust that owned it for about a decade, according to Karin Chao of Asia Pacific Capital Co., an adviser to the buyer.
The Airport Marriott is one of the largest hotels in Los Angeles County, with 1,004 rooms in 18 stories. It was completed in 1972 at 5855 W. Century Blvd.
About $35-million worth of improvements are coming to the hotel, said Eddy Chao of Asia Pacific. Meeting rooms on the top floor will be eliminated to create a new "executive floor," where guests in Marriott's rewards program can lounge and eat breakfast.
(Excerpt) Read more at latimes.com ...
Probably going to install surveillance equipment (bugs).
Now how long until all these Chinese buildings end up back in a US/Western company’s hands, much like the Japanese acquisitions did?
Why, all the easier to facilitate meetings with their Chinese handlers as the fly in to debrief them, my dear. “Heh, heh, heh,” said the Big Bad Wolf, er, Dragon.
With improvements, that works out to be about $200,000 per room. It’s a 42 year-old property and they are not going to be able to charge the rates needed to make it work out.
Could be that the Chinese business simply wants to put the money where the Chinese government can’t get to it.
Which will be the birthing floor?
I had a similar thought. We often finance branded hotel improvements and this sale is way above market, even given the name, location, and improvement potential. They’re going to be in $200 million for a 1,000 room hotel! I’m sure the previous owner saw the price and SPRINTED with the money bags to the bank.
I worked a deal with a Chinese national a few months ago where he had several million dollar properties around LA, all paid with cash. We couldn’t work with him because he wouldn’t let us secure on a piece of real estate since all of his liquid assets (and citizenship) were in China...according to him.
Having worked with Taiwanese imports and foreigners who exported back to their countries (mostly Africa and Middle East), I knew how easily our collateral could end up in a container back to China, so securing on real estate was the only option.
analysis seems correct
the reason could also be insanity
but your hypothesis is more than plausible.
Heh, depends on the type of "tourism". See post 7.
The business channel had a China investments expert on around two weeks ago. He said that Chinese have very few areas to invest their money into....ten percent of the options that you or I would have. So they end up with lots of cash, and throwing traditionally at Chinese investments of a very questionable nature. So, it only makes sense....take the bulk Chinese capital out of China, and invest it (even at stupid pay-offs) in western countries. At least the money is safe and paying something.
People in communist China have been buying between a third and 3/4 of all housing listings in both LA and Bay Area — depending on neighborhood. That’s a lot of buying. A big hotel right at the airport is perfect for many of the Chinese that do come look at the houses (many don’t ). This hotel buyer may figure it has a big built-in customer base.
Sichuan Xinglida Group Enterprises Co.
I wonder what % the Chinese government owns.
Bloomberg knows nothing about this company
http://investing.businessweek.com/research/stocks/private/people.asp?privcapId=47844952
Many of these Chinese corporations are owned by the Chinese government. What do we actually know about this company anyways
This is another example of hussein selling out America to the enemy. His hatred for the Republic is endless as evidenced by kowtowing to OPEC, opening the floodgates to Fidel Castro and now he’s allowing the ChiComs to buy out the country. Disgusting.
I am starting to wonder if that Chinese company really exists
In China, business IS the government. There is no real difference.
Great, now Chinese military intelligence has a cushy headquarters on the West coast!
Close enough to ex-Hughes facilities in El Segundo. Lot’s of RF signals there. Also a lot of RF noise from the LAX airport...
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