Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) announced today that in keeping with its previously announced plan to sell non-strategic assets, maximize shareholder value, and focus on its core lodging and gaming businesses, it is continuing to explore strategies for the disposition of its remaining 35% ownership interest in ITT Educational Services, Inc. (NYSE: ESI). Starwood is beginning the process of making the required notifications and filings with federal and state regulatory agencies related to the potential disposition of its interest in ESI. In June, Starwood sold approximately 13 million shares of ESI in a public offering which generated proceeds of about $315 million.
Starwood is considering a number of opportunities to monetize its remaining ESI holdings, including a sale of all or a portion of its interest or the issuance of securities that are exchangeable for or which otherwise relate to the ESI stock. The timing of any transaction will depend upon a number of factors, including market conditions, and there is no assurance that any transaction will be completed in the near term.
ESI is a leading proprietary provider of technology-oriented post-secondary degree programs in the United States. The company offers associate, bachelor, and master degree programs and non-degree diploma programs to approximately 27,000 students through a system of 64 ITT Technical Institutes located in 27 states.
Starwood Hotels & Resorts Worldwide, Inc., through its Sheraton, Westin and Caesars subsidiaries, is one of the leading hotel and gaming operating companies in the world. Starwood Hotels & Resorts is the largest real estate investment trust in the United States. Shares of Starwood Hotels & Resorts Worldwide, Inc. are paired and trade together with shares of Starwood Hotels & Resorts.
Note: Statements in this press release that are not historical may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Starwood believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from Starwood expectations include completion of pending acquisitions, continued availability of acquisitions, continued availability of debt and equity financing on favorable terms, changes in tax and other laws, foreign exchange fluctuations, performance of hotel operations, financial performance, real estate conditions, market valuations of its stock, execution of hotel renovation programs, changes in local, national or foreign economic conditions and other risks detailed from time to time in the Company`s SEC reports, including quarterly reports on Form 10-Q, current reports on Form 8-K and annual reports on Form 10-K.