Starwood Capital Group has sold about $2 billion worth of hotels to China Life Insurance Co., a firm that is majority-owned by the Chinese government.
Starwood Capital will continue to manage the portfolio, which includes 280 select-service hotels across 40 U.S. states, Starwood Capital said Tuesday. Starwood Capital (not affiliated with Starwood Hotels & Resorts) didn't disclose which hotels were sold.
"With this select-service hotel portfolio, China Life has an efficient vehicle for investing in the United States economy as a whole," Starwood Capital Group founder and CEO Barry Sternlicht said in a statement. "These assets offer access to strong markets, strong cash-on-cash yields, scale and diversification."
China insurance giants continue to make large investments in the U.S. hospitality sector. Last year, Starwood Capital sold the new Baccarat Hotel New York to Sunshine Insurance Group. The hotel sold for more than $230 million, or more than $2 million per guestroom, according to reports.
Meanwhile, Anbang Insurance Group last year paid Hilton Worldwide $1.95 billion for the Waldorf Astoria New York, and earlier this year bid on Starwood Hotels & Resorts before bowing out to Marriott International. Anbang also is reportedly near the completion of a $6.5 billion acquisition of Strategic Hotels & Resorts (a portfolio of luxury hotels) from Blackstone Group.