Business / Industries

Domestic firms plan more overseas luxury hotel deals

By Wang Wen (China Daily) Updated: 2014-06-21 07:17

Some smaller privately-owned companies also invested huge amounts into the overseas hotel properties.

Jiangsu GPRO Group Co Ltd, a privately owned company involved in manufacturing, real estate and modern services industries based in Jiangsu province, made the largest investment by a Chinese company in Spain this March by purchasing a five-star hotel for 50 million euros.

Sichuan Xinglida Group Industry Co Ltd, a privately-owned real estate investment company based in Sichuan province, spent $47 million on a Marriott hotel in Los Angeles in late 2013.

Actually, the tendency of Chinese companies going overseas started from 2012, when they started to diversify their business and made hedges through overseas investment.

"Real estate is the main industry for Chinese companies to invest into hotel property is just a type of real estates," said Xia from LaSalle.

The gateway cities, such as Paris, London, New York and Los Angeles, are still the first options for the Chinese investors, Xia said, which have strong markets.

The real estate market, including hotel property market, in the main cities of Europe and the US will continue going up, as the economy there is recovering, he said.

Compared with other types of real estate, hotel properties can provide more stable returns, if they are well managed. Most of the hotel properties Chinese investors purchased still have management contracts with international hotel management companies and there is little management risk, Xia said.

Domestic firms plan more overseas luxury hotel deals

Domestic firms plan more overseas luxury hotel deals

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