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Hospitality Lawyer — Barry Sternlicht and Starwood bet on . . . China!

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6 December 2006
Hospitality Lawyer: China. I had no sooner posted my last entry on our expert panel’s views for Outlook 2007 as it relates to international markets when I read an update as of December 6, 2007 that Barry Sternlicht and Starwood capital have increased their bet on China! And of course, this comes after a huge investment in India as we discussed in “.”Hospitality Lawyer: Sternlicht and Starwood Capital to put $500 million in India for Crillon, ‘1’ Hotels and Residences and budget hotel chain, Campanile

Tom Corcoran, CEO of FelCor, nailed it when he said in today’s posting, “When you talk about hot markets, you’d have to say, China, China, China… and India.”

Here are the details on the Sternlicht/Starwood investment in China.

China joint venture with Shanghai Jin Jiang International Hotels reported today that Barry Sternlicht’s Starwood Capital entered a strategic relationship with Shanghai Jin Jiang International Hotels, one of China’s largest hotel operators.

Starwood Capital will make a $30 million strategic investment in Jin Jiang. This will make Starwood the largest outside-shareholder in the company. Starwood and Jin Jiang will work together to develop and strengthen each other’s hotel business, mainly in China, and will cooperate on hotel business projects.

“Starwood Capital is very excited about the potential for Jin Jiang in China and abroad, and for our future partnership together,” said Sternlicht, who built the Starwood Hotels chain into a major industry player before stepping aside last year. Starwood Capital isn’t related to the publicly traded company.

“Jin Jiang’s geographic reach and portfolio of owned assets across all hotel categories leaves it uniquely positioned to benefit from the explosive growth in the Chinese hotel industry, fueled by rapidly expanding tourism and business travel,” Sternlicht said. “By combining Jin Jiang’s portfolio, which features irreplaceable hotels in Shanghai and other major Chinese cities, with our track record of creating global brands and enhancing asset value in both the luxury and budget categories, the partnership has the potential to create significant value for both companies going forward.”

Our Perspective. We represent developers, owners and lenders. We have helped our clients as business and legal advisors on more than $50 billion of hotel transactions, involving more than 1,000 properties all over the world. For more information, please contact Jim Butler at or 310.201.3526.

Jim Butler is one of the top hotel lawyers in the world. GOOGLE “hotel lawyer” or “hotel mixed-use” or “condo hotel lawyer” and you will see why.

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Jim and his team are more than “just” great hotel lawyers. They are also hospitality consultants and business advisors. They are deal makers. They can help find the right operator or capital provider. They know who to call and how to reach them. They are a major gateway of hotel finance, facilitating the flow of capital with their legal skill, hospitality industry knowledge and ability to find the right “fit” for all parts of the capital stack. Because they are part of the very fabric of the hotel industry, they are able to help clients identify key business goals, assemble the right team, strategize the approach to optimize value and then get the deal done.

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Jim Butler is a Founding Partner of Jeffer, Mangels, Butler & Marmaro LLP and he is Chairman of the firm’s Global Hospitality Group®. If you would like to discuss any hospitality or condo hotel matters, Jim would like to hear from you. Contact him at or 310.201.3526. For his views on current industry issues, visit