Qatar Rumored to Be in Talks to Buy St. Regis NYC, San Francisco Hotels
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The Qatar Investment Authority is rumored to be closing in on a deal to acquire a pair of St. Regis hotels in key markets from Starwood Hotels & Resorts Worldwide.
Citing sources close to the situation, Bloomberg reported that the Middle Eastern country's sovereign-wealth fund is in advanced talks to purchase the St. Regis New York and St. Regis San Francisco as Starwood aims to part ways with its remaining real estate ahead of its impending merger with Marriott International.
Together, the two five-star hotels are valued at approximately $1 billion. However, sources told Bloomberg they could potentially sell for less.
If a deal is ultimately reached, it would signal just the latest investment in the U.S. from an overseas company as China has been aggressive in acquiring U.S. assets through the first few months of 2016.
Meanwhile, the Qatar Investment Authority, which was established more than a decade ago, has invested roughly $38 billion in property around the world, including $7.5 billion on hotels, according to Real Capital Analytics Inc. And recently the country has set its sights on the U.S. and Asia, revealing last year that it plans to invest $35 billion in the U.S. over the next five years.
According to Bloomberg, Starwood is also hoping to sell the Westin Maui Resort & Spa, the Westin Peachtree Plaza in Atlanta and the Tremont Chicago Hotel at Magnificent Mile ahead of this summer's merger.
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