Shanghai – 30 March 2017 –
Shimao Property Holdings and Starwood Capital Group announce that controlled affiliates of the two companies will establish a new hotel joint venture based in China.
Under the terms of the agreement, the venture will be owned 51 percent by Shimao and 49 percent by Starwood Capital Group.
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.
A partnership between two companies offering such deep real estate expertise represents a milestone in the Chinese hospitality sector.
“The close cooperation with Starwood Capital Group will help our growing hospitality platform and exciting new brands take advantage of the tremendous opportunities that exist in China, allowing the group to fulfill its potential,” says Tyrone Tang, General Manager of Shimao Hotels and Resorts, a subsidiary of Shimao Property Holdings Limited that operates, manages and develops hotels and resorts.
“The joint venture will focus on maximising the benefits that can be derived from the intangible assets, consolidating the group’s sustainable commercial development while ensuring profitability, and providing the most effective support for partners.
“We believe that a combination of Shimao Hotels and Resorts’ strong management and comprehensive understanding of the Chinese hospitality industry, together with Starwood Capital Group’s financial strength and global lodging experience, will create win-win results.”
Shimao Hotels and Resorts’ diversified domestic hotel portfolio consists of the MiniMax, MiniMax Premier and Yu family of brands, which encompasses the Yu Resort, Yuluxe Hotel, Yu Hotel and Yu Residence brands.
The MiniMax (3-star) and MiniMax Premier (4-star) brands offer a “design-forward” product at an affordable price to the growing class of Chinese millennials that are actively seeking out unique lodging experiences. The 5-star upper upscale Yu Brands will infuse traditional Chinese elements into state-of-the art accommodations.
Starwood Capital Group, one of the world’s leading investment firms focused on real estate, will also 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.