A Las Vegas-based real estate developer has expressed interest in buying a 15-hotel portfolio posted by China’s Anbang Insurance, according to the New York Post.
Anbang is selling 15 of its 18 owned hotels, and Lockwood Development Partners—with a group of hotel franchisees—is considering acquiring them. Neither the developer nor Anbang is revealing all of the hotels that would be included in the potential transaction, though the portfolio does include Manhattan’s Essex House. The Waldorf Astoria is confirmed to not be included in the group.
Lockwood Development said in a statement that Anbang is asking potential buyers to bid on the rate or return on hotel income for the unnamed 15 hotels.
Lockwood Development currently owns four hotels in Alabama, and is contracted to build the new Cosmopolitan in Miami and another hotel on a site in Chicago. The company is led by president David Hanlon, while Charles Everhardt heads acquisitions and development.
Anbang is selling the portfolio following its seizure by the Chinese government in February. Now, the company is shedding its hotel assets in order to raise capital to prevent its collapse. The company was seized following accusations it had violated regulations,putting into question its ability to pay insurance claims. Since the seizure, Anbang has received $9.7 billion from the Chinese government to keep the company afloat.