Starwood Hotels & Resorts Worldwide is to sell 38 properties to real estate company Host Marriot in a deal worth US$4bn (3.4bn euro, £2.3bn).
The disposal includes 20 Sheratons, 13 Westins, one St Regis, two W’s, one Luxury Collection and one non-branded hotel.
The portfolio – which Starwood will continue to manage – covers 28 hotels in north America, six hotels in Europe and two each in Asia and Latin America.
Steven Heyer, chief executive, said: “This transaction accelerates Starwood’s transformation from a real estate company with some hotel brands to a consumer lifestyle company with a branded hotel portfolio at its core.”
However, in a interview with the Financial Times, the founder and former chief executive of Starwood, Barry Sternlicht – who left the group last year to head property investment firm Starwood Capital Group – attacked the sale, saying the hotels could have sold for up to US$800m (680m euro, £460m) more.
Analysts have predicted that the cash boost from the sale raises the prospect of Starwood making a bid for the InterContinental Hotels Group. Details:
www.starwoodhotels.com
