Checking in: Foreign investors see investment opportunity in U.S. hotel market
Asian institutions have been actively investing in U.S. hotel properties. In September, Seoul-based Mirae Asset Financial Group acquired a 15-hotel portfolio in the United States from Anbang Insurance Group Co. for $5.8 billion, marking the single-highest price tag for an overseas alternative investment by a South Korean company.
In October, Summit Hotel Properties agreed to acquire four West Coast hotels for $249 million through its recently formed joint venture with GIC, Singapore’s sovereign wealth fund. The 710-room portfolio consists of two Residence Inn by Marriott hotels and two Hilton Garden Inns, located in Portland, Ore., and the San Francisco Bay Area. The joint venture plans to invest approximately $23 million of capital in the four hotels during the first three years of ownership. The pending transaction is expected to close in fourth quarter 2019.
The global hotel construction pipeline, led by the United States, is at a record high, according to Lodging