Home / Press Release / Hotel De Coronado in Santa Monica is acquired by Chinese Insurer for $6.5-billion

Hotel De Coronado in Santa Monica is acquired by Chinese Insurer for $6.5-billion

This might be the one of the major deal in this year, The Chinese insurance company named Anbang is acquiring the historic Hotel del Coronado and Loews Santa Monica Beach Hotels for a greater amount of 6.5 billion US dollars. The Strategic Hotels and Resorts Incorporation were previously owned by Blackstone Group, which own similar 16 properties, will be sold to Anbang Insurance Group, said by the source, who familiar with this transaction.

The deal clearly illustrates the corporate unquenched thirst for the United States real estate. It’s been only three months, Blackstone Group (BX.N) bought the Inc., for $6 billion. But, now the Beijing-based Anbang is investing $6.5 billion dollars by buying the above-mentioned hotel group. The previous year, the company has invested approximately $1.95 billion by acquiring Waldorf Astoria in the city of New York from Hilton Worldwide Holdings.

By buying the Strategic Hotels from Blackstone, Anbang will host a series of high-end luxuries hotels and resorts in a single shot. The entire property will range 7,532 rooms. Also, it comes with the numerous meeting as well as banquet spaces for the company. Blackstone acquired the Strategic Hotels in the month of December for a disclosed sum of $3.93 billion and the total value reached $6 billion, which includes debts too. Selling Strategic Hotels to Anbang will provide a decent sum of profit to Blackstone and in a shorter span of time, the company has obtained a profit of $0.5 billion. Yes, it is quite a decent number while comparing to other deals in the current market. In addition to this, Chinese investment in buying hotels has been consistently increasing from the year 2012.

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