Chinese real estate developer Shimao Property Holdings and Starwood Capital Group will establish a new hotel joint venture based in China.
The joint venture, which will be owned 51 per cent by Shimao and 49 per cent by Starwood Capital Group, plans to focus on developing, operating and branding assets via management contracts and leasing agreements.
Starwood Capital Group will also provide 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.
By catering to the value-conscious yet increasingly discerning Chinese traveller seeking a differentiated lodging experience, the partnership's ultimate goal is to develop one China's most recognisable hotel companies.
"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," said Tyrone Tang, general manager of Shimao 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.”
Starwood Capital has invested in approximately 2,900 hotels since its inception. The firm created and built Starwood Hotels & Resorts into the largest hotel company in the world before exiting its stake in the company.