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WASHINGTON, DC-Buccini/Pollin Group, an East Coast investment and development stalwart that runs its hotel operations out of Washington, DC, is venturing abroad for new opportunities. On the heels of its newly established regional office in Baltimore, BPG is planning to open a fourth regional office in Beijing, Christopher Buccini, one of the founding partners of BPG tells GlobeSt.com in an exclusive interview.

“There are so many exciting opportunities in China in tier one and tier two markets and there are virtually no other American hotel developers and owners looking in the market,” he says.

From its stateside perch the company has been pursuing opportunities in China, he adds: it is in advanced negotiations for two five-star hotels located in tier-one and tier-two cities with an aggregate value of $50 million. BPG expects to close on the cumulative 500-keys within the next six months, he says.

BPG is also in talks with a few large American franchisers to run the hotels once they are acquired.

Negotiations as well as further sourcing of investment opportunities is expected to become much easier once the firm has a local presence. BPG is currently in final lease negotiations for the building it wants to occupy, Buccini says. Initially, it will have four people staffing the office.

Valuations can be tricky business in the hotel industry even in home markets. China’s market is equally as complex and sophisticated as the US or Europe, Buccini reports, but it has a familiar feel to hoteliers. “They use the same metrics and performance benchmarks. We have not had any problems with underwriting and due diligence as a result.”

BPG is not alone in its desire to seek out opportunities overseas. China, not surprisingly, is a favored destination. As one example, the country will be a major focus for ProLogis for the next four years.

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