Starwood Hotels & Resorts, the nation`s largest hotel real estate investment trust today announced it has reached a definitive agreement to sell a portfolio of eight all-suite hotels to Felcor Suite Hotels, Inc. for approximately $245 million. The transaction is expected to close by May 1, 1998 and upon closing two of the hotels, the Doubletree Guest Suites Cypress Creek in Fort Lauderdale, Florida and the Doubletree Guest Suites in Lexington, Kentucky will be reflagged as Sheraton Suites and continue to be managed by Starwood Hotels & Resorts Worldwide, Inc.
The portfolio includes eight hotels;
* Embassy Suites Phoenix Airport, Phoenix, AZ 229 suites
* Tempe Embassy Suites, Tempe, AZ 224 suites
* Palm Desert Embassy Suites, Palm Desert, CA 198 suites
* Embassy Suites Hotel, Atlanta, GA 233 suites
* St. Louis Embassy Suites, St. Louis, MO 297 suites
* Doubletree Guest Suites, Dallas-Ft. Worth Airport, TX 308 suites
* Doubletree Guest Suites Cypress Creek, Ft. Lauderdale, FL 254 suites
* Doubletree Guest Suites - Lexington, KY 155 suites
``This is a solid transaction for both buyer and seller,`` commented Barry S. Sternlicht, Chairman and Chief Executive Officer of Starwood Hotels & Resorts, ``and expands our relationship with Felcor Suite Hotels. Other than the two hotels we will reflag and manage, we do not have the ability to use one of our brands on these properties in the foreseeable future because of the length of the franchise agreements. The Trust will record a gain in excess of $70 million on the sale. The sale proceeds will be used to pay down debt and allow us to redeploy capital to assets that are more consistent with the company`s lodging business,`` Mr. Sternlicht concluded.
Starwood Hotels & Resorts is the largest hotel REIT in the United States. Shares of the Trust are paired and trade together with shares of Starwood Hotels & Resorts Worldwide, Inc. Starwood Hotels & Resorts Worldwide, Inc. leases properties from the Trust and operates these directly or through its management companies.