Anbang Blocked from Buying California Hotel Over Security Fears

China’s Anbang Insurance Group, the failed bidder on Starwood hotels & Resorts, was unable to complete its purchase of a landmark Southern California hotel near a major naval base amid security concerns from United States national security officials.

Blackstone Group LP called off the sale of the Hotel del Coronado in San Diego, estimated to be worth $1 billion, after the Committee on Foreign Investment in the United States expressed concerns. The agency reviews acquisitions by foreign business  for national security risks. The hotel is located on a peninsula that is home to the United States Naval Base Coronado and a training facility for Navy SEALs.

The Hotel del Coronado was the most valuable of the 16 properties Anbang was purchasing from Strategic Hotels & Resorts, a real estate investment trust acquired by Blackstone. The Beijing-based company completed the purchase of the 15 other hotels last month.