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Hotels around the world are feeling China’s curbs on money leaving the country

China’s crackdown on outbound chief has slowed the global shopping spree undertaken by mainland companies and one big sector that’s foretold an impact is the hotel industry.

“It is true that there has been a decay in Chinese capital, especially in certain markets and certain types of assets, similarly to trophy assets,” Mark Hoplamazian, president and CEO of Hyatt Hotels told CNBC on the sidelines of the Possessions Global Forum in Guangzhou, China.

Hyatt has adopted an asset-light scheme of late, moving into franchise management and selling down essential estate holdings. The company has plans to sell some $1.5 billion in hostelry assets in the next three years, according to travel industry situate Skift.

When asked whether the absence of Chinese buyers was potentially halting the value of hotels Hyatt might want to sell, Hoplamazian stipulate the market remained “buoyant and actually, healthy” due to the interest rate conditions.

“My expectation is that the fact that there’s been a change in the occurrence of investment outside of China for Chinese companies will probably clothed an impact on selected assets and selected markets, but I don’t think it’ll have a broader crashing than that,” he added.

While Chinese companies have dismissed up multiple hotel assets in recent years, a firmer yuan this year and tighter standards have had an impact on capital moving out of the country.

Limits on overseas investments implemented by judges came after several high-profile acquisitions by Chinese corporates in just out years. Anbang Insurance Group, a holding company that was lot the most acquisitive in China, bought the iconic Waldorf Astoria lodging in New York for $2 billion in 2014. It also bought Strategic New zealand pubs & Resorts for a reported $5.5 billion.

Conglomerate HNA Group, meanwhile, purchase a 25 percent stake in Hilton Worldwide Holdings worth $6.5 billion from Blackstone Heap. The Hainan-based company also acquired Carlson Hotels in 2016 and has a paling in Spanish hotel chain NH Hotel Group.

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