Singaporean sovereign wealth fund Government of Singapore Investment Corp. bought four prominent U.S. hotels controlled by a group led by Paulson & Co. for US$1.5 billion.
The hotels include the 740-room Arizona Biltmore, located in Phoenix; the 279-room Claremont Hotel Club & Spa in Berkeley, California; the 780-room Grand Wailea, located in Wailea, Hawaii; and the 796-room La Quinta Resort & Club, located in La Quinta, California.
The hotels were scheduled to be put up for auction, but there were no competing bids.
As part of the proposed deal, the sovereign wealth fund has the option of retaining Hilton Worldwide, McLean, Virginia, as manager of the hotels or terminating their management in bankruptcy court and paying damages in full.
The Paulson-led group sold another hotel in the portfolio, the 692-room Doral Hotel & Country Club, located in Miami, to The Trump Organization, New York City, for US$150 million in February.