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US private equity giant Blackstone still remembers that the surest way to make money remains the simplest one: buy low, sell high... and then buy back even lower.
That's what it is trying to do with a portfolio of luxury hotels currently belonging to China's terminally troubled and recently nationalized conglomerate Anbang. According to the FT, as part of Beijing's unwind of Anbang Insurance, Chinese authorities have received offers of up to $5.8BN for the conglomerate’s US luxury hotels business from a group of bidders including Blackstone and Brookfield. In addition to these two, another fifteen potential buyers, which include South Korea’s Mirae Asset Management, SoftBank-owned Fortress, and GIC, Singapore’s sovereign wealth fund, have made it to the final bidding round for the Anbang hotel properties.
Plain - Vanilla - Estate - Auction - Market
Yet while this would be just another plain vanilla commercial real estate auction in what is already a frothy market, if Blackstone ends up the winning bidder, it would cap what the FT dubbed "a remarkable series of deals" involving the US private equity firm, which bought Strategic Hotels in December 2015 for $6 Billion before selling it just three months later to Anbang for $6.5 billion. And now, just over three years later, it may buy it back for $1 billion less!
The sale of the Chicago-based Strategic Hotels, one of Anbang’s most valuable assets in the US, comes after the conglomerate was placed under the control of Chinese regulators last year when its founder Wu Xiaohui was jailed for 18 years on fraud and embezzlement charges, while the company was on the verge of collapse.
Luxury - Hotels - Block - Fairmont - Scottsdale
The 15 luxury hotels on the block include the Fairmont Scottsdale, several Ritz-Carlton properties including those in Half Moon Bay near Silicon Valley, several Four Seasons hotels, the JW Marriott Essex House on Central Park South in NYC, the Intercontinental in...
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