Shimao Property Holdings Ltd. has teamed up with Starwood Capital Group to create a new hotel joint venture in China, which will focus on developing, operating, and branding assets through management and leasing contracts.
The joint venture will be established by controlled affiliates of the two partners. Shimao and Starwood Capital will hold a respective 51% and 49% stake in the new venture.
General manager of Shimao Hotels and Resorts Tyrone Tang said the new platform's objective will be to harness opportunities in the Chinese market and consolidate the group's sustainable commercial development, while ensuring profitability. Shimao hotel unit's current Chinese portfolio comprises the MiniMax, MiniMax Premier and Yu brands.
Starwood's role in the partnership will also enable it to give Shimao Hotels and Resorts financial and operational support in the latter's pipeline expansion plans in China, according to a release.