Hotel labor union sues Anbang

The Loews Santa Monica Beach.
The Loews Santa Monica Beach.

Anbang Insurance Group has been sued by Unite Here, the labor union representing workers at three Anbang-owned hotels in California and Illinois, after the Chinese company didn't respond to requests for information about its financing sources and ownership structure, the union said on Thursday.

Unite Here said it filed federal charges for unfair labor practices against Anbang after failing to secure a guarantee that the 1,000-plus workers at San Francisco's Westin St. Francis, the Fairmont Chicago and the Loews Santa Monica Beach would keep their jobs in the event that the hotels were sold. 

The union made the request after Bloomberg, citing people familiar with the process, reported late last month that China regulators are pressuring Anbang to sell its U.S. assets. The company and the China Insurance Regulatory Commission have denied the report. 

Anbang chairman Wu Xiaohui was in June detained by China authorities, though the reasons behind the detention are unclear.

Anbang got the three hotels as part of its acquisition of the Strategic Hotels and Resorts portfolio from Blackstone Group.

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