Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) announced today that, consistent with its plan to selectively dispose of non-strategic assets, it has sold the 366-room Ritz Carlton Kansas City Hotel for $61 million to Maritz, Wolff & Co., a private investment fund based in St. Louis, MO.
Proceeds to Starwood may be used to reduce debt or to repurchase stock from time to time under Starwood`s existing share repurchase program.
“We are very pleased with the price we received for this asset,” Barry S. Sternlicht, chairman and chief executive officer of Starwood said. “With the Ritz Carlton management agreement expiring at the end of this year, the significant capital required to maintain the property and our already strong brand presence in Kansas City with the Westin Crown Center and the Sheraton Suites Country Club Plaza, this was an excellent time to monetize this asset,” Mr. Sternlicht said.
In September, Starwood said it had identified a number of hotel properties with an estimated gross sale price of approximately $500 million as potential sales candidates between that time and the second quarter of 2000. At that time, Mr. Sternlicht said, “We are continuing to evaluate our worldwide portfolio with a focus toward improving our stock performance for our shareholders.”
In October, the company announced the sale of its stake in the Grande Bretagne Hotel in Athens for approximately $186 million.
Starwood, through its subsidiaries, owns, manages and franchises hotels under its St. Regis, The Luxury Collection, Westin, Sheraton, Four Points and W brands. Starwood is one of the leading hotel and leisure companies in the world with more than 700 hotels in 76 countries and 130,000 employees at its owned and managed properties.