(Yicai Global) March 30 – Shanghai-based Shimao Group, specializing in Chinese real estate development sector, and the US Starwood Capital Group, an equity investment group that owns Starwood international hotels chain, announced a new joint-venture hotel company.
Both companies agreed that Shimao Group will hold 51 percent of the stock rights of the new company, while Starwood Capital will inject capital and hold 49 percent stake. The joint venture plans to focus on the fast-growing Chinese hotel market and carry out hotel development, brand operation, and asset management.
Starwood Capital Group will provide strong financial and operational support for the future development of Shimao Group Hotels & Resorts in China, as well as in the Asia-Pacific region. The joint venture will combine the strengths and experience of both parties to provide diversified stay experience for Chinese travelers to meet their higher expectations and demand, and is committed to becoming one of the most outstanding hotel groups in China, said a joint statement.
Starwood Capital Group, founded in 1991, is a professional private equity management company focusing on global real estate market. It particularly focuses on global hotel investment. Starwood Hotels & Resorts is one of group's successful investments. Recently, Starwood Capital has recently focused on the hotel market in Asia, especially in China, and strives to find suitable partners and investment opportunities, it said, consequently choosing partnership with Shimao Group Hotels & Resorts.
As one of the world's fastest-growing economies, with a large and growing middle class with increasing disposable income, China represents an exciting market for us, and we are looking forward to meeting Chinese consumers' rapidly evolving lodging needs through this partnership," said Kevin Colket, managing director and head of hotels for Asia at Starwood Capital Group.
Shimao Group, headquartered in Hong Kong, is a real estate development company in possession of two holding listed companies, namely, Shimao Property [HKG: 0813.HK] and Shimao Stock [SHG: 600823.SH].