Chinese investor buys Paris Marriott for $439M

Four months ago, Hong-Kong based Kai Yuan Holdings expressed interest in buying the Paris Marriott Hotel Champs-Elysees for an estimated $468 million. Today that deal has officially closed.

According to Property EU, JLL's Hotels & Hospitality Group acted as the advisor of the transaction for the seller. The 192-room hotel was sold for $439 million, and is one of the only a few hotels located on the Avenue des Champs-Elysées in Paris.

"This sale confirms the increasing interest from Asian capital for assets in Paris and the attractiveness of European key gateway cities for high-profile real estate investments," Nihat Ercan, EVP of JLL’s Hotels & Hospitality Group in Singapore, told Property EU.

FREE DAILY NEWSLETTER

Like this story? Subscribe to IHIF!

The hospitality industry turns to IHIF International Hotel Investment News as the must-read source for investment and development coverage worldwide. Sign up today to get inside the deal with the latest transactions, openings, financing, and more delivered to your inbox and read on the go.

Earlier this year, JLL predicted that hotel volume would increase in Europe, the Middle East and Africa by over 20 percent throughout 2014. This level of growth could be a possibility, with JLL securing over $1.2 billion in deals this year in Paris alone.

This high profile Paris hotel acquisition by Kai Yuan is indicative of this, as well as the increased interest in Western hotel developments from both Chinese investors and travelers. David Sadigh, founder and CEO of Digital Luxury Group, told The Malay Mail that this investment could be a result of the growing middle class and China's recent encounters with Western brands in their own country, prompting them to be interested in them overseas as well. 

According to the Malay Mail, China (at 9 percent) is the second largest market seeking out luxury hotels worldwide (the UK placed first at 10 percent). Online interest from Chinese travelers in hotels rose 39 percent from last year.

Suggested Articles

The Peppers Airlie Beach resort in north Queensland is up for sale via an International expressions of interest campaign.

Ahead of the Mediterranean Resort & Hotel Real Estate Forum, Atrium Hotels' Athinagoras Konstantinidis discusses hotel opportunities and challenges.

The Radisson Red Miraflores has 100 guestrooms, a games studio and a fitness center.