Shimao Property Holdings Ltd, a Shanghai-based property developer listed on the Hong Kong Stock Exchange, and Starwood Capital Group, a US private investment firm, have announced plans to jointly establish a new hotel joint venture in China.

Under the terms of the agreement, Shimao will hold a 51% stake in the joint venture, while Starwood will own the remaining 49%. The venture plans to focus on developing and operating news hotels in China, according to a company announcement.

"The joint venture will focus on maximizing the benefits that can be derived from the intangible assets, consolidating the group's sustainable commercial development while ensuring profitability, and providing the most effective support for partners," said Tyrone Tang, a general manager at Shimao Hotels and Resorts, a subsidiary of Shimao Property.

"We believe that a combination of Shimao Hotels and Resorts' strong management and comprehensive understanding of the Chinese hospitality industry, together with Starwood Capital Group's financial strength and global lodging experience, will create win-win results," Tang added.