Geolo Capital, Wanxiang Group Corp. to invest in U.S. hotels

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.

Virtual Event

Hotel Optimization Part 3 | January 27, 2021

With 2020 behind us and widespread vaccine distribution on the horizon, the second half of the new year is looking up, but for Q1 (and most likely well into Q2) we’re very much still in the thick of what has undeniably been the lowest point of the pandemic. What can you be doing now to power through and set yourself up for a prosperous 2021 and beyond? Join us at Part 3 of Hotel Optimization – A Virtual Event on January 27 from 10am – 1:05pm ET for expert panels focused on getting you back to profitability.