Chinese Insurance Group to Purchase Strategic Hotels for $6.5 Billion
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China's Anbang Insurance Group, perhaps best known for purchasing the iconic Waldorf Astoria New York early last year, is set to acquire Strategic Hotels & Resorts from the Blackstone Group.
Citing a source familiar with the situation, USA Today reported the deal is valued at $6.5 billion.
Interestingly, the deal comes just months after the Blackstone Group acquired Strategic Hotels for just under $4 billion in a deal that included debt.
While Blackstone appears poised to profit from the sale, the agreement is significant for Anbang in that it signals a notable expansion within the U.S.'s luxury hotel market.
Headquartered in Chicago, Strategic Hotels comprises more than 7,500 rooms spanning 16 properties. Notable properties include San Diego's Hotel Del Coronado and the Essex House located in Manhattan.
The brand also owns Ritz-Carlton and Four Seasons properties in popular U.S. destinations.
The agreement comes just 13 months after Anbang purchased New York's Waldorf Astoria from Hilton Worldwide for $1.95 billion.
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