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Three Chinese-Owned Luxury Hotels to be Sold for $1.3B

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Dajia Insurance is trying to capitalize on the summer surge in U.S. travel. They hope to offload three luxury U.S. resort properties that were owned by China’s Anbang Insurance to the tune of $1.3B.

Great views: The three properties trading hands include the Montage in Laguna Beach, CA, the Four Seasons Resort in Jackson Hole, WY, and the Four Seasons in Scottsdale, AZ. Representing the seller is Bank of America Securities Inc. (BAC) and Eastdil Secured LLC, a subsidiary of Wells Fargo (WFC).

Covid price drop: Anbang Insurance originally had the deal lined up with a $5.8B price tag. Unfortunately, before they were able to get to the finish line, the pandemic hit. The purchaser would have been South Korea’s Mirae Asset Financial Group. But with no guests in rooms, there was no deal to be made. Dajia’s new sales price of $1.3B represents a 77% decline in the value of the three properties.

Business casual: Industry observer KSL Capital Partners, which owns and operates over 400 hotels, resorts, and other leisure businesses worldwide, believes that even with the near-term downturn caused by rising interest rates and a slowing economy, there remains a great deal of interest in high-end resorts and leisure destinations. They aren’t too concerned about the long-term prospects for high-end leisure and travel.