(Yicai Global) Dec. 12 -- Chinese real estate developer Joy City Property Ltd. [HK:0207] has sold the W Hotel for USD299.3 million (CNY1.98 billion) after it accumulated operating losses of CNY300 million over the last two years.

The firm, a unit of state-owned conglomerate COFCO Group, sold the hotel to Tianfu Fund Management Co., an investment firm based in Chengdu, capital of west China's Sichuan province, for CNY1.36 billion.

The buyer also agreed to repay loans worth CNY624 million related to the hotel, located on Chang'an Avenue, close to the capital's famous Tiananmen Square and Forbidden City.

The hotel has operated at a loss ever since opening in September 2014, with occupancy rates averaging 55 percent and 69 percent last year and this year, respectively. The location is one of the worst-performing hotels under Joy City Property.  

W Hotels is a luxury hotel chain operated by Starwood Hotels & Resorts Worldwide LLC, a unit of Marriott International Inc. [NASDAQ:MAR]. The style of the W Hotel in Beijing differs greatly from other locations, resulting in inherent issues related to the hotel design, which contributed to the poor performance.