San Francisco-based Geolo Capital—owner of Commune Hotels + Resorts—has partnered with Wanxiang America Real Estate Group, the U.S. subsidiary of Chinese private automotive components company Wanxiang Group Corporation, to invest in a series of U.S. hotels.
“Our shared backgrounds as entrepreneurs and common vision to be long-term owners of irreplaceable assets will enable us to exceed our growth objectives within the U.S. hospitality market,” says John Pritzker, founding partner and director of Geolo Capital.
The newly formed partnership has already committed to a combined investment of more than $400 million in hotel properties and plans to investigate additional real estate opportunities concentrated in California, Texas, and Illinois that would bring the total investment to $1 billion. Wanxiang has invested in more than 80 projects in 23 states since 2010.
“We look forward to expanding our relationship with Geolo and investing in additional value-add and irreplaceable hospitality assets nationwide,” says Larry Krueger, managing director of Wanxiang America Real Estate Group.
The first two acquisitions are located in Northern California: the 60-room Ventana Inn & Spa in Big Sur, and the 180-room Carmel Valley Ranch, a resort on 500 acres in Carmel Valley. Both properties, which will continue to be managed by Commune, will receive a total redesign and new programming.
