Anbang’s bid to buy landmark US hotel near naval base called off due to security concerns
San Diego’s famous Hotel del Coronado is next door to base that trains Navy SEALs special forces
A deal by China’s Anbang Insurance Group Co to purchase a landmark Southern California hotel near a major naval base from Blackstone Group LP was called off following opposition from US national security officials, according to people with knowledge of the decision.
Blackstone ended the sale of the Hotel del Coronado near San Diego, worth an estimated US$1 billion, after concerns were raised by the Committee on Foreign Investment in the United States (CFIUS), according to the people, who asked not to be identified because the sale process was private. The interagency body, led by the Treasury Department, reviews acquisitions of American businesses by non-US entities for national-security risks.
The iconic Victorian era hotel, where the 1959 Billy Wilder comedy Some Like It Hot starring Marylin Monroe was filmed, is one of the most valuable of the 16 luxury properties that were part of Strategic Hotels & Resorts, a real estate investment trust that Blackstone acquired last December for about US$6 billion. The firm agreed in March to sell Strategic to Anbang for US$6.5 billion, and the Beijing-based company completed the purchase of 15 hotels last month, according to people with knowledge of the transaction.
The remaining hotel is located on a peninsula that’s also home to the Naval Base Coronado. The base comprises eight installations that lie on either side of the hotel, including an air station, amphibious base, landing fields, radio receiving facility and warfare training centre. It’s one of the main training grounds for the Navy SEALs special forces.
The sale’s termination delays Blackstone’s ability to cash out of its Strategic purchase at a profit. The Hotel del Coronado has an assessed value of US$588 million, though its market price is far higher.
