NEW YORK CITY—Starwood Capital Group on Monday confirmed that it is selling its Baccarat Hotel New York to an affiliate of Sunshine Insurance Group, already China's seventh largest insurer after just five years in operation. The property, which is scheduled to open next month, marks the second major investment in New York lodging properties by a Chinese insurer in the past few months, following the Blackstone Group's sale of the iconic Waldorf-Astoria to Anbang Insurance Group for $1.95 billion this past October.

Starwood Capital Group did not disclose terms of the acquisition. The Wall Street Journal reported that the private equity firm got the price it sought when it began shopping around the Baccarat's hotel component last June: roughly $2 million per key, or about $230 million for 114 keys on the first 12 floors of the property. The deal does not include the 49 for-sale apartments on the 50-story tower's upper floors, known collectively as the Baccarat Residences New York.

Located at 20 W. 53rd St., across the street from the Museum of Modern Art, the property marks crystal maker Baccarat's entry into the luxury hospitality arena. For Sunshine to buy it on the heels of Anbang's Waldorf deal “could signal an increase in the pace of Chinese institutional capital looking abroad for diversification and safety,” Ben Thypin, director of market analysis at Real Capital Analytics, told Bloomberg Business on Monday.   

"We are extremely pleased to have found such a great partner for Starwood and Baccarat in the Sunshine Insurance Group,” says Barry Sternlicht, Starwood Capital's chairman and CEO. Sunshine shares our long term strategic vision for Baccarat Hotels and will be an excellent partner for the growth of our brands particularly in the fast growing travel markets of Asia. Baccarat Hotels are also under construction in Dubai and Rabat, Morocco, and we are working on projects in several European capitals and resorts.”

When the deal closes, the Baccarat Hotel New York will be managed under a long-term contract by Starwood Capital's SH Group, a hotel management company created by Starwood Capital. SH is also the creative force behind the Baccarat hotel brand and the eco-conscious 1 Hotels brand.

Starwood Capital was advised by Eastdil Secured and represented by Greenberg Traurig LLP on the sale. Sunshine Insurance Group was advised by JLL's Hotels & Hospitality Group, with legal counsel provided by Holland & Knight LLP.