China Life Insurance and a number of investors are investing US$2bn (€1.82bn) with Starwood Capital in US hotels.

China’s largest life insurance company is the anchor investor for the portfolio, alongside a group of sovereign wealth funds and other investors.

The 280 hotels are affiliated with global hospitality brands and are known as ‘select-service’ hotels, providing accommodation without restaurant or leisure facilities.

Barry Sternlicht, chairman and CEO of Starwood Capital, said: “With this select-service hotel portfolio, China Life has an efficient vehicle for investing in the US economy as a whole – as these assets offer access to strong markets, strong cash-on-cash yields, scale and diversification.”

A recent report by CBRE noted the significant outflows of capital from China.

The country was the biggest source of outbound Asian real estate capital this year, according to the advisory firm. Investors from the country accounted for 60%, or $16.1bn (€14.2bn), of total Asian outbound investment in the first half of 2016 – more than double the same period last year.

The US remained the favoured target for Asian investors, attracting 52% of the total.