March 13, 2016
New York City-based Blackstone Group LP and Anbang Insurance Group Co. of China have reached an agreement for the sale of Strategic Hotels & Resorts Inc. Anbang will acquire Strategic Hotels’ portfolio (which includes Ritz-Carltons in California and Essex House in New York) for approximately $6.5 million.
The price is $450 million more than what Blackstone paid for Strategic in December. Blackstone had planned to sell individual properties from the portfolio, before Anbang reportedly made a pre-emptive offer for the entire company.
According to Bloomberg Business, this transaction ranks as the largest U.S. real estate purchase by a mainland Chinese buyer.