Starwood Hotels & Resorts Worldwide, Inc. announced that it has completed $540 million of long-term mortgage financing. The multi-property loan package has been provided by affiliates of Goldman, Sachs & Co. and Lehman Brothers. The 10-year financing, which has been fixed at a rate of 6.95%, will contribute to the Company`s goal of locking-in attractive fixed rates and lengthening maturities. The financing is non-recourse and will be secured by cross- collateralized first mortgages on a portfolio of up to 11 hotels. Net proceeds of the financing and the recently announced sale of The International Golf Club in Bolton have been used to retire the asset sale bridge loan due February 23, 1999. The bulk of the company`s maturities now exceed 4 years and Starwood has no significant debt maturing until November, 2000.
``This long-term financing not only clears up the only near term maturity on our balance sheet but is at a very attractive rate given the recent widening of spreads for public bond offerings. This is a good indication of Starwood`s current credit quality and the quality of our assets,`` said Barry S. Sternlicht, chairman and chief executive officer of Starwood.
Starwood Hotels & Resorts Worldwide, Inc., (NYSE: HOT) through its Sheraton, Westin and Caesars subsidiaries, is one of the leading hotel and gaming operating companies in the world. The company owns, operates and franchises more than 650 hotels in 70 countries and has over 125,000 employees.