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Bailey McCann, Opalesque New York:

Starwood Capital Group is launching a new China-based joint venture with Shimao Property Holdings Limited. Shimao is a Chinese property developer and operator. Under the terms of the agreement, the venture will be owned 51 percent by Shimao and 49 percent by Starwood Capital Group.

Morgan Stanley, sole financial advisor in the transaction.

The joint venture plans to focus on developing, operating, and branding assets in the hotel market in China through both management contracts and leasing agreements. Both companies plan to use their long track records in real estate investment to build out the portfolio of the JV.

Shimao Hotels and Resorts China portfolio already includes the MiniMax, MiniMax Premier and Yu family of brands, a mix of 3, 4 and 5-star hotels. Starwood, for its part, will provide financial and operational support for Shimao Hotels and Resorts' future hotel expansion plans in China and throughout the Asia-Pacific region.

Over the past few years, Starwood Capital Group has increasingly focused on investment opportunities in Asia particularly China and said in a statement it wanted to work with Shimao Hotel & Resorts on the JV because of the company's size and experience in the hospitality industry in Asia.

"As one of the world's fastest-growing economies, with a large and growing middle class with increasing disposable income, China represents an exciting market for us, and we are look......................

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