Nansay International Inc. of Tokyo and ITT...

Nansay International Inc. of Tokyo and ITT Sheraton Corp. are launching a $1-billion venture to buy and operate hotels in the United States, the Pacific and in Asia.

Sheraton will manage three hotels that Nansay is developing at the Kohanaiki resort on the island of Hawaii, Sheraton Chairman John Kapioltas said in Honolulu. Work is also under way on hotels in Los Angeles, Guam and Saipan.

Under the arrangement, Nansay will be responsible for financing and project development, while Sheraton will manage the hotels and determine opportunities for additional projects.

Later, the companies plan a second joint venture in which each will put up capital to buy hotels and ownership will be shared equally, Kapioltas said. He said the hotel industry on the mainland is depressed, and in many cases investors are willing to sell, giving Sheraton opportunities to expand.