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Mirae sued after backing out of deal for luxury hotels
China’s Anbang Insurance Group has sued South Korea’s Mirae Asset Global Investments after the latter reportedly reneged on a US$5.8 billion purchase of a portfolio of US luxury hotels.
Anbang filed a suit in the US to ‘seek an order forcing defendants to specifically perform their obligations under a sale and purchase agreement and certain equity commitment letters.’
Mirae deposited a 10% down payment last September and was supposed to complete the deal earlier this month.
Anbang claims Mirae is suffering from ‘buyer’s remorse’ brought on by the economic turmoil of the Covid-19 pandemic.
Miraie has been unable to secure sufficient financing to complete the deal, Bloomberg reports, citing sources.
The Strategic Hotels & Resorts Inc portfolio includes flagship properties Westin St. Francis in San Francisco, Loews Santa Monica Beach Hotel, and JW Marriott Essex House in New York.
Mirae had asked for additional time to finalise the deal.
The Chinese insurance group puchased the hotel portfolio for US$6.5 billion four years ago but soon found itself mired in debt and was placed under state control for two years in order to restructure the business.
Occupancy rates in the US luxury hotel sector has tanked to almost single digits according to hotel industry data firm STR due to Covid-19 travel restrictions and stay at home orders.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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