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The Wall Street Journal is reporting that China’s Sunshine Insurance Group Co. has agreed to pay more US$230 million for the 114-room luxury hotel.
Starwood Capital and its leader Barry Sternlicht are taking advantage of foreign investor’s keen desire to put their money into safe U.S. real estate and reportedly is selling its new Baccarat Hotel in New York – even before it opens next month – for a potentially record-breaking valuation. The Wall Street Journal is reporting that China’s Sunshine Insurance Group Co. has agreed to pay more US$230 million for the 114-room luxury hotel. Starwood Capital’s management arm will retain management of the property. The valuation reportedly beats the previous record set by the Plaza Hotel in New York, which sold in 2012 to India’s Sahara Group for US$2.04 million a room. Located on West 53rd Street, the hotel will feature 15,000 pieces of French crystal stemware from its namesake, as well as glittering furniture and chandeliers. The hotel, housed in a 50-story skyscraper located next door to the Museum of Modern Art, will include a world-class spa, a French brasserie led by a Michelin-rated chef and a bar inspired by Versailles. Sunshine Insurance in November paid US$380 million for the Sheraton in Sydney, continuing the trend of Chinese companies seeing A-location real estate as prestigious, safe and long-term investment that can provide steady income during a period of low interest rates. |
