The Iconic Hotel Del Coronado Hotel Sold In $6.5-B “Packaged” Deal
$BX, $HOT, $MAR
China’s Anbang Insurance Group has bought the 128 year old iconic Hotel Del Coronado in a $6.5-B deal that includes the Strategic Hotels & Resorts.
The hotel group, which also owns the Ritz-Carlton Half Moon Bay, the Westin St. Francis in San Francisco and the Four Season in East Palo Alto, was very recently acquired by Blackstone Group (NYSE:BX) December in December 2015 for $6-B.
The historic Hotel del Coronado, which also goes by “The Del” and “Hotel Del”, opened in Y 1888 as the then-largest resort in the world.
It survives among the few examples left depicting American architecture, and even starred in many films including Billy Wilder’s Some Like It Hot, with Marilyn Monroe, Jack Lemon, and Tony Curtis.
According to Bill Sandke, a member of the Coronado (California) City Council, the new management is not likely to induce any changes, and guests of the Hotel Del Coronado can expect an equally excellent quality of service that they have grown accustomed to over the years.
The Chinese insurance company is on an American hotel buying spree lately, including the Waldorf Astoria in New York and 1 Chase Manhattan Plaza in its list of acquisitions over the past 2 years..
In March, Starwood Hotels and Resorts Worldwide Inc. (NYSE:HOT) received a $14-B bid from an Anbang unit, the bid was later withdrawn.
Marriott Hotels (NYSE:MAR) was the successful bidder for Starwood, the merger would create the biggest hospitality company in the world, with more than 5,700 hotels and 1.1-M rooms globally.
Shareholders of Bethesda, MD-based Marriott and Stamford, Conn-based Starwood approved the deal on 8 April, following a month-long bidding war involving a consortium of Chinese investors led byAnbang Insurance Group Co., and resulting in a merger valued at $12.6-B.
Marriott spent $10-M in Q-1 on its planned merger before it was certain the deal would go through, according to US Securities and Exchange Commission filings. The merger is not expected to close until after 30 June according to a source.
Have a terrific weekend.
Paul Ebeling
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