Billionaire John Pritzker’s private investment firm and a unit of Chinese auto-parts maker Wanxiang Group Corp. are reportedly teaming up to invest $1 billion in U.S. hotels, according to Bloomberg.
Pritzker’s San Francisco-based Geolo Capital and Wanxiang America has already completed $400 million in acquisitions, including the luxury Ventana Inn & Spa in Big Sur, California, from Walton Street Capital LLC and Oaktree Capital Management LP, the companies said in a statement. Wanxiang also purchased from Geolo a minority stake in the 180-room Carmel Valley Ranch resort in Carmel, California. Geolo’s hotel-management company, Commune Hotels & Resorts, which also has the Thompson Hotels and Joie de Vivre chains, will continue to operate both properties.
Wanxiang and Geolo are seeking additional purchases and developments of high-end lodging properties in areas such as California, Texas and Illinois. Since 2010, Wanxiang has invested in about 80 real estate projects in 23 U.S. states, according to the statement.