ATLANTA — In October 2016, U.S. private investment firm Starwood Capital Group sold a $2-billion stake in a select-service hotel portfolio to China Life Insurance, China’s largest life insurance company. The price tag notwithstanding, the deal was shocking for the composition of hotels. Up to then, institutional investors, U.S. and otherwise, concentrated hospitality investments primarily on higher-end hotels. In 2014, for instance, Anbang Insurance paid nearly $2 billion for the Waldorf Astoria in New York, and a year later Starwood Capital sold the Baccarat Hotel, also in Manhattan, to China’s Sunshine Insurance Group for a record $2 million per key, or $230 million for the 114-room hotel.
Though select-service hotels don’t carry the distinction that hotels in the upper-echelon do, they do carry something that…(Click Here for Full Article)