South Korea’s NPS commits $300m to US hotel fund
South Korea’s $452 billion National Pension Service has invested $300 million in a hotel fund managed by U.S.-based global property investment firm Starwood Capital Group, according to local media outlets.
The fund is called SCG Hotel Investors Fund, and it comprises investments in 280 hotels in 40 states. The hotel fund focuses on business-class hotels, targeting business travelers rather than tourists for their stable returns rather than luxury ones.
NPS has been active in the primary U.S. office markets. The Starwood investment is considered the pension fund’s entry to the U.S. hotel market.