Chinese company acquires LAX Marriot
China XLD Group’s acquisition of the Los Angeles Airport Marriot for US$165 million is the second Marriot acquisition for the group in a year.
Chinese investors are tapping Los Angeles’s vast tourism resources and business opportunities, evident by China XLD Group’s acquisition of the Los Angeles Airport Marriot for US$165 million following its successful Marriot acquisition last year.
“Since we took over the Marriot Torrance South Bay last year, the hotel has achieved 40% increase in profits and significantly improved profile in the city within a year. This success has prompted us to acquire the Los Angeles Airport Marriot,” China XLD Group president Jun Zhang said at the handover ceremony.
The Los Angeles flagship of the Marriot Group Los Angeles Airport Marriot, said to be the busiest hotel in LA, adjoins the airport with 1,004 rooms and 29 conference halls and an average occupancy above 95% this year .
An investment expert described the deal as a “perfect model for trans-national investment” judging from the price and rate of return, as the cost of building a similar hotel in the same location would be four times the acquisition price. He believed the deal would further boost Chinese investors’ confidence of investing in the US.
China’s consul general in Los Angeles Jian Liu said at the ceremony that he hoped Chinese companies would invest in a range of industries and that US companies would in turn invest in China. “This will help enrich and strengthen our bilateral relations,” he said.(Translation by David)