Location Attracted Sheraton Universal Buyer

The China-based real estate development company that recently acquired the Sheraton Universal Hotel announced that the hotel’s entertainment-based location and confidence in the United States’ economic future led to the purchase. Shenzhen New World Co., Ltd. held an acquisition ceremony Jan. 5 at the Universal City hotel to officially announce the company’s purchase of the site. The company bought the 451-room hotel from its court-appointed receiver, Rim Hospitality, for $90 million. The purchase follows another recent hotel acquisition in the Los Angeles area by the Chinese company. In March, Shenzhen New World Co. bought the Marriott Downtown Los Angeles hotel for $150 million. Wei Huang, the Chinese company’s chairman, said the Sheraton Universal Hotel’s location is what made it an attractive buy. “I have strong confidence in this area because our hotel is located in the hub of (Universal Studios Hollywood), which attracts millions of tourists every year,” Huang said through a translator. “Here is also the capital of the world film studios.” Huang also said that he has confidence in the “bright future” of the United States’ economy and in China-U.S. relationships. Alluding to a Chinese saying, he said crisis leads to both danger and opportunity. “I see an opportunity forthcoming,” he added. The company plans to spend about $5 million renovating the hotel’s pool and corporate meeting rooms. The company also has a goal of bringing more Chinese travelers to the hotel. Patti MacJennett, spokeswoman of The Los Angeles Convention and Visitors Bureau, called the hotel an icon in the city landscape, especially for those traveling to Universal Studios Hollywood. She added that the theme park, which is a magnet for international travelers, is Los Angeles’ number-one attraction and drew record attendance last year with the opening of its King Kong 360 3D show. Vance Baugham, president of the World Trade Center Association, said Shenzhen New World Co.’s recently purchased hotels play an important role in the local economy. “In these tough economic times—and they’re getting better—they have nearly 700 employees at work,” said Baugham, whose organization is part of the Los Angeles County Economic Development Corporation. “And important to all citizens of Los Angeles County, what they generate with these two purchases in local and state revenue is over $8.7 million a year.”