Chinese property developer Shimao Property and global private investment firm Starwood Capital announced that controlled affiliates of the two companies will establish a new hotel joint venture based in China. The venture will be owned 51% by Shimao and 49% by Starwood Capital.
The joint venture plans to focus on developing, operating, and branding assets in the rapidly growing hotel market in China via both management contracts and leasing agreements.
Starwood Capital, one of the world's leading investment firms focused on real estate, will provide strong financial and operational support for Shimao Hotels and Resorts' future hotel expansion plans in China and other key Asia-Pacific regions, particularly markets that have witnessed unprecedented levels of Chinese arrivals.
Shimao Hotels and Resorts is a subsidiary of Shimao Property that operates, manages and develops hotels and resorts.
By leveraging each partner's focus on operational efficiency and knowledge of global best practices, the joint venture's brands will prioritize generating superior returns for third-party owners.
Starwood Capital has invested in approximately 2,900 hotels since its inception. The firm is known for creating and building Starwood Hotels & Resorts into the largest hotel company in the world before exiting its stake in the company.