Councilmember Pearce Requests Security Review Before Sale of Local Hyatt Hotels to Shanghai Construction Group
2017-03-24 · By Editor
Councilmember Jeannine Pearce (Long Beach District 2) wrote to Treasury Secretary Steven Mnuchin requesting a national security review of the potential sale of the Hyatt Regency Long Beach and Hyatt Centric the Pike Long Beach hotels to a company controlled by the Chinese state. An excerpt of the letter is below:
“I write regarding the Hyatt Regency Long Beach and Hyatt Centric the Pike hotels, which are located in my district, Long Beach District 2. I understand that Hyatt is in the process of selling the hotels to an affiliate of the Shanghai Construction Group (“SCG”), a state-owned construction and real estate company ultimately controlled by the municipal government of Shanghai, China.”
“I request that the Committee on Foreign Investment in the United States (“CFIUS”) review the hotels’ potential sale to SCG. This matter is time sensitive. CFIUS should take the opportunity to ensure any potential national security questions are addressed before the transaction has been finalized.”
“The hotels are within a line of sight of the offices of federal agencies including U.S. Customs and Border Protection and within close proximity of the offices of federal agencies including Immigration and Customs Enforcement, the investigative arm of the Department of Homeland Security and the Department of Defense, which handle sensitive information related to national security. The Hyatt Regency Long Beach is also next door to the Long Beach Convention Center, which hosts clients for conventions, trade and consumer shows, meetings and other events. Its clients have included U.S. Customs and Border Protection, the Department of the Army, and the Defense Contract Management Agency.