Greenwich, Connecticut-based property investment firm, Starwood Capital, and Hong Kong-listed property developer Shimao Property Holdings are set to create a China-based joint venture.
Through the JV the pair plans to focus on developing, operating, and branding assets in the hotel market in China via both management contracts and leasing agreements.
Under the terms of the agreement, the venture will be owned 51 percent by Shimao and 49 percent by Starwood Capital.
“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,” commented Kevin Colket, managing director and head of hotels for Asia at Starwood Capital.
Starwood Capital 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.
Since its inception in 1991, Starwood Capital has raised over $37 billion of equity capital and currently has approximately $52 billion of assets under management.