Sheraton Universal Hotel bought by a Shenzhen firm
A Shenzhen real estate firm that already owns a Los Angeles hotel is forging a deal to purchase another hotel, this move shows a trust in the recovery of the hospitality industry and the interest of Asian investors in purchasing U.S. commercial property.
The Sheraton Universal Hotel did not disclosed the rumors, but experts says they have closely monitored the dealing made with Shenzhen New World Group Co. purchased the 451 room hotel that overlooks Universal City for US$90 million. A far off price from the previous amount former owner Lowe Enterprises paid when the acquired the property. Lowe Enterprises bought the hotel on 2007 for US$122 million and spent US$25 million more on improvements, but lost control of the hotel last year due to the recession scarred travel business.
This will be the second hotel the the company Shenzhen New World have purchased in Los Angeles. The real estate developer bought the 469 room Los Angeles Marriott last year for US$60 million. Shenzhen New World executives took control of the Sheraton Universal Hotel last Wednesday, and the company plans to spend an additional US$5 million to renovate the hotels pool area, meeting rooms and private spaces. The company was keen on purchasing the hotel since it was located in the heart of Los Angeles and near the Universal Studios theme park.