China's Esong Group makes first U.S. hotel buy

(The Holiday Inn Lax acquired by Chinese company)

The CIM Group recently sold the Holiday Inn at the Los Angeles International Airport to China-based US OCG, a subsidiary of the Esong Group. The $52.5-million acquisition is the company’s first hotel purchase in the U.S. market. 

The purchase comes at an apt time as the airport is in the middle of an $8-billion Master Plan renovation. A representative from Infinity Realty Advisors, who handled the transaction, said that the property would “benefit from the LAX multi-billion development program.” An advisor to the buyer also noted that the hotel is an underutilized asset which provides opportunity in a dense market.

The 405-room hotel has reportedly been operating at occupancy rates around the 90 percent mark. Interstate Hotels & Resorts has been tapped to manage the property. 
 

Benjamin Zhang, U.S. OCG; Zhouyun Wang, chairman of Esong Group; Judy Chu, US Congresswoman; Don Li, Interstate Hotels & Resorts; Jackie Lee, Interstate Hotels & Resorts