Forms hotel joint venture with Shimao
Starwood Capital Group and Shimao Property Holdings Ltd. said they have created a joint venture focused on developing, operating and branding hotels in China via management contracts and leasing agreements. The venture will be owned 51 percent by Shanghai-based Shimao and 49 percent by Starwood Capital Group, whose founder, chairman and ceo is high-profile hotelier Barry Sternlicht.
Kevin Colket, managing director and head of hotels for Asia at Starwood Capital, says, "We believe that this partnership will benefit from Starwood Capital Group's global investment expertise and world-class marketing and revenue management capabilities, together with Shimao's impressive domestic development track record, strong brand recognition and expansive partner network. As one of the world's fastest-growing economies, with a large and growing middle class with increasing disposable income, China represents an exciting market for us, and we are looking forward to meeting Chinese consumers' rapidly evolving lodging needs through this partnership."
The lobby at Shimao’s MiniMax Premier Hotel Shanghai Hongqiao. Image: Courtesy of the Shimao Hotels and Resorts website
Tyrone Tang, general manager of Shimao Hotels and Resorts, says, “We believe that a combination of Shimao Hotels and Resorts' strong management and comprehensive understanding of the Chinese hospitality industry, together with Starwood Capital Group's financial strength and global lodging experience, will create win-win results.”
Shimao Hotels and Resorts, a subsidiary of Shimao Property Holdings Ltd., operates, manages and develops hotels and resorts under the MiniMax, MiniMax Premier and Yu brands. (The latter encompasses the Yu Resort, Yuluxe Hotel, Yu Hotel and Yu Residence brands.) Shimao describes the MiniMax (3-star) and MiniMax Premier (4-star) brands as design-forward products at an affordable price with a target audience of Chinese millennials who are seeking unique lodging experiences. The 5-star upper upscale Yu Brands will infuse traditional Chinese elements into state-of-the art accommodations, Shimao says.
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