Host Hotels, GIC Announce $600M Asian Joint Venture

Singapore (AHN)-- The Government of Singapore Investment Corporation (GIC) has inked a $600 million venture with a U.S. hotel group to explore investment opportunities in Asia and Australia.

In a statement, Host Hotels & Resorts, Inc. and RECO Hotels JV Private Limited, an affiliate of GIC Real Estate Pte Ltd, announced that it has entered the joint venture structured as a Singapore corporation.

The project has a total investment potential of between $1.5 billion to $2.0 billion.

Host Hotels & Resorts, Inc, which owns 119 properties in over 50 major markets worldwide, will hold a 25 percent stake in the venture While RECO controls the remaining 75 percent.

GIC is one of two investment vehicles of the Singapore government and manages the country's foreign reserves of more than 100 billion dollars through various investments. Its property arm has been expanding its portfolio around the world, including in Tokyo, Munich, Sydney and Seoul.

Host Marriott, on the other hand, operates as a real estate investment trust that primarily engages in the ownership and operation of hotel properties in North America.

It operates its hotels under various brand names, including Marriott, Ritz-Carlton, Hyatt, Four Seasons, Fairmont, Hilton, and Westin.