Blackstone ends landmark hotel sale to Anbang
San Diego’s Hotel del Coronado was part of Strategic purchase in which the Chinese insurer already bought 15 of 16 hotels in USD 6.5 billion deal.
A deal by China’s Anbang Insurance Group to purchase a landmark Southern California hotel near a major naval base from Blackstone Group was called off following opposition from U.S. national-security officials, according to a Bloomberg report.
Blackstone ended the sale of the Hotel del Coronado near San Diego, estimated to be worth about USD 1 billion, after concerns were raised by the Committee on Foreign Investment in the United States (CFIUS). The interagency body, led by the Treasury Department, reviews acquisitions of American businesses by non-U.S. entities for national-security risks.
The hotel is one of the most valuable of the 16 luxury properties that were part of Strategic Hotels & Resorts, a real estate investment trust that Blackstone acquired last December for about USD 6 billion.
The firm agreed in March to sell Strategic to Anbang for USD 6.5 billion, and the Beijing-based company completed the purchase of 15 hotels last month.
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