Raleigh, North Carolina-based Alliance Hospitality Hotel Management has been in discussions with several large Chinese investment groups regarding a potential joint-venture partnership arrangement. The firms are seeking exposure to the U.S. hotel sector, Alliance Chairman Rolf Tweeten said.
Tweeten declined to identify the firms or the nature of the potential agreements that might take place. He said deals with Chinese firms can take time.
“They appear to be very engaged in a joint venture and then you don’t hear from them for a period of time,” he said. “You have to be patient.”
Further, Tweeten said the investors are unlikely to call upon a broker to find a deal. “They want personal relationships,” he said.
He said he has perceived a shift in the type of hotel Chinese investors will plug their money into. In the past, the investment firms were all about large, iconic properties. While those sorts of hotels still receive investment, investors also are willing to consider a select-service asset as long as the property is located in a prime urban location.
“You see them coming out of that comfort zone (of full service),” Tweeten said. “They’re looking at top 40, top 20 destinations for hotels.”