Thayer and Shanghai Hotelier Launch $200M U.S. Fund

July 18,2009

With help from investment adviser and fund manager Thayer Lodging Group Inc., one of Shanghai's publicly traded hoteliers, Shanghai Jin Jiang International Hotels (Group) Co., is coming to America.


Jin Jiang International is setting up a $200 million joint venture investment vehicle with Thayer to enter the U.S. market. Jin Jiang will be investing through its wholly owned subsidiary, Capital Gathering.


The unnamed venture, a Delaware incorporated limited liability company, will be set up by Thayer and Capital Gathering with a commitment of $1 million from each group in several days, but the venture can take on more cash.


Each partner is capped at a contribution of $100 million. Thayer Lodging Group is participating through its Thayer V fund.


According to a filing with the Hong Kong board, the joint venture was created to "invest in, acquire, develop and/or reposition one or more select hospital companies with principal business operations in the United States and other markets."


With its latest move, Shanghai Jin Jiang is following other Asian hospitality chains on a westward expansion.


This week, Starwood Hotels & Resorts announced that it had signed an agreement to sell its W San Francisco property for $90 million to Keck Seng Investments (HK) Ltd., a publicly traded hotel investment and property management company.