Partnership Combines One of the Largest Asian-Owned Hotel Brands with
Starwood Capital’s Extensive Acquisition and Management Experience
GREENWICH, Conn., Dec. 7 /Xinhau-PRNewswire/ -- Starwood Capital Group
announced today that it has entered into a strategic relationship with
Shanghai Jin Jiang International Hotels (Group) Company Limited ("Jin
Jiang"), one of China’s largest hotel operators. Under the terms of the
agreement, Starwood Capital will make a $30 million strategic investment in
Jin Jiang, making Starwood the largest outside shareholder in the company.
Through the new strategic partnership, Starwood Capital and Jin Jiang
will work together to develop and strengthen each other’s hotel business,
mainly in the People’s Republic of China, and will cooperate on hotel
business projects.
"Starwood Capital is very excited about the potential for Jin Jiang in
China and abroad, and for our future partnership together," said Barry
Sternlicht, Starwood Capital’s Chairman and Chief Executive Officer. "Jin
Jiang’s geographic reach and portfolio of owned assets across all hotel
categories leaves it uniquely positioned to benefit from the explosive growth
in the Chinese hotel industry, fueled by rapidly expanding tourism and
business travel. By combining Jin Jiang’s portfolio, which features
irreplaceable hotels in Shanghai and other major Chinese cities, with our
track record of creating global brands and enhancing asset value in both the
luxury and budget categories, the partnership has the potential to create
significant value for both companies going forward."
Jin Jiang has 263 hotels in operation or under development, including a
portfolio of prestigious assets such as the Jin Jiang Hotel, the Peace Hotel,
the Metropole and the Pacific Hotel in Shanghai, as well as the Kunlun Hotel
in Beijing. The company owns a substantial budget hotel portfolio in China
with approximately 160 assets under the Jin Jiang Inn brand. Prior to the
IPO, Jin Jiang was an indirect 100-percent State Owned Enterprise under the
control of Shanghai City Government.
Starwood Capital Group
Starwood Capital Group has been a leader in real estate investments since
1991. Its international investor base includes some of the United States’
largest state and corporate pension funds, endowments and foundations and
high-net worth families from around the world. During the past fifteen years,
Starwood Capital and its affiliates have invested approximately $6 billion of
equity capital in transactions representing over $30 billion of asset value.
Starwood has closed and/or advised on over 215 transactions ranging in size
from $1 million to $14.6 billion, and has acquired equity interests in
residential and multifamily, hotels, office, retail and industrial space,
golf and leisure-related properties. Starwood’s most recent transactions
include the $3.2 billion acquisition of Groupe Taittinger and Societe du
Louvre, Europe’s second largest hotel network with a unique collection of 14
luxury hotels in Europe, including France and Switzerland, in addition to
managing over 800 budget hotels throughout Europe plus the approximately $1
billion acquisition of 32 Le Meridien luxury, four/five star hotels located
primarily across Europe but also in North America, Africa and South America.
Starwood has led the formation and growth of several market leading companies
including iStar Financial, the leading publicly traded finance company
specializing in commercial real estate mortgage, mezzanine and net lease
financing; Starwood Hotels & Resorts Worldwide, a leading global
owner/operator of hotels, with ownership of brands such as Sheraton, Westin,
The St. Regis Luxury Collection and the "W"; and National Golf
Properties/American Golf Corporation, the largest owner/operator of golf
courses and related facilities in the United States. Starwood Capital Group
no longer owns an equity stake in either iStar Financial or Starwood Hotels.
This news release is not (and is not intended to be) an offer of the
securities of Jin Jiang in the United States. Unless registered or exempt
from registration under the US Securities Act of 1933, as amended, these
securities are not permitted to be offered or sold in the United States.
