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Chinese firm makes bid for Palo Alto, East Palo Alto hotels

Original post made on Mar 14, 2016

A Chinese insurance company could soon be purchasing the company that owns the Westin and Sheraton hotels in Palo Alto, according to news reports by Bloomberg News.

Read the full story here Web Link posted Monday, March 14, 2016, 4:36 PM

Comments (10)

Posted by BP
a resident of Barron Park
on Mar 14, 2016 at 11:23 pm

just what palo alto needs. might as well as rename the town.


Posted by AlexDeLarge
a resident of Midtown
on Mar 15, 2016 at 12:03 am

Hahahahahahaha. Priceless...


Posted by Resident
a resident of South of Midtown
on Mar 15, 2016 at 6:39 am

They are actually doing in response to Trump. I am not kidding. The nation is approaching a conflagration and we're about to feel it in Palo Alto. I suspect the bubble may soon burst... we won't remain a sheltered, silver spoon town for long...


Posted by Bronx Cheer
a resident of Another Palo Alto neighborhood
on Mar 15, 2016 at 9:45 am

This is awful news. China likes to think it is "conquering" America through economic war and invasion.

Sure looks like they are winning.


Posted by Ralph
a resident of University South
on Mar 15, 2016 at 11:05 am

Ralph is a registered user.

Wrong...wrong...wrong....the Sheraton and Westin hotels in Palo Alto are not owned by Starwood and therefore would not be part of any purchase of Starwood Hotels by anyone. The Sheraton and Westin are owned by Pacific Hotel Management and have franchise agreements with Starwood. As many people in the community know, that company is owned by a local family, the Chen's, who have been very philanthropic in Palo Alto and Stanford University since the mid 70's.


Posted by OldPA Resident
a resident of Old Palo Alto
on Mar 15, 2016 at 11:21 am

OldPA Resident is a registered user.

Does anyone remember when Japan was in its economic ascendancy and Japanese companies purchase Rockefeller Center and Pebble Beach in the 1990's? Those investments didn't work out well. Let's revisit these purchases by Chinese companies a few years hence.


Posted by 1drin
a resident of Charleston Meadows
on Mar 15, 2016 at 1:02 pm

1drin is a registered user.

As much as I detest loons like Trump and Cruz, it's news like this that get voters to their side.


Posted by 1drin
a resident of Charleston Meadows
on Mar 15, 2016 at 1:02 pm

1drin is a registered user.

As much as I detest loons like Trump and Cruz, it's news like this that get voters to their side.


Posted by Clement Chen
a resident of Another Palo Alto neighborhood
on Mar 15, 2016 at 3:29 pm

Clement Chen is a registered user.

Many thanks to Ralph for clarifying the ownership of the Sheraton Palo Alto Hotel and The Westin Palo Alto!

Starwood owns the Sheraton and Westin names/brands, but not these hotels. (Starwood does own some hotels elsewhere.) The Sheraton Palo Alto (which my father built as the Holiday Inn in 1973) and The Westin Palo Alto (which I built in 2000) pay franchise fees (and other fees) to Starwood for the right to use the Sheraton and Westin names and to be members of the brands. This franchise structure is similar to other business such as restaurants (fast food, pizza, frozen yogurt, etc.), printing, cleaning services, The UPS Store, and many others.

In the case of the Sheraton Palo Alto Hotel and The Westin Palo Alto, Marriott and Anbang Insurance are vying for the right to receive the franchise fees. Unlike Anbang's other deal to purchase Strategic Hotels and Resorts, they would not purchase the Sheraton Palo Alto Hotel or The Westin Palo Alto, nor become the employer of the staff - as Ralph noted, my family's hotel management company, Pacific Hotel Management, LLC operates and will continue to operate the hotels and employ the staff, and two other family entities own and will continue to own the actual buildings, furniture, silverware, etc.

That said, it is indeed notable that a mainland Chinese company is making a credible offer to acquire a major hotel company. I would not have foreseen this possibility 20 years ago.

Clement Chen


Posted by Jocelyn Dong
editor of the Palo Alto Weekly
on Mar 15, 2016 at 5:07 pm

Jocelyn Dong is a registered user.

The Weekly would like to apologize for the inaccurate information in the initial article about the ownership of the Palo Alto Westin and Sheraton hotels. It has now been corrected.

Thank you, Clement Chen, for speaking with reporter Sue Dremann and explaining the ownership structure. We regret the error.


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