WHITE PLAINS, N.Y.—(BUSINESS WIRE)—May 21, 2003—Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) has signed a binding agreement to sell a portfolio of 14 non-strategic domestic hotels for approximately $312 million, subject to certain adjustments.
In addition, Starwood is negotiating definitive agreements with another strategic partner for the sale of the 4 additional domestic hotels discussed in the first quarter 2003 earnings release and anticipates entering into agreements in the near future. Proceeds from these and other previously announced asset sales are expected to be approximately $1.1 billion which will be used to repay debt and for general corporate purposes.
The sale of the 14 hotels is to a group of investors including Olympus Real Estate Partners, Rockwood Capital, Prudential Real Estate Investors and HEI Hospitality. Starwood received a significant non-refundable deposit as part of the agreement. The sale, subject to standard closing conditions, is expected to close by the third quarter.
The portfolio of 14 hotels includes 4,171 rooms and is comprised of 8 Sheratons, 2 Westins, 1 Marriott, 2 Hiltons and 1 independent property located in 11 states. The Starwood branded hotels in the portfolio will remain under their current flags with an additional hotel planned for conversion to a Starwood flag. HEI will assume management of the majority of these properties and as part of this transaction, HEI expects to introduce future franchising opportunities for Starwood`s brands. The portfolio of 4 hotels includes 1,392 rooms and is comprised of 2 Sheratons and 2 Marriotts located in 4 states.
Starwood was advised by Bear, Stearns & Co. Inc. in connection with this transaction.
Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with more than 750 properties in more than 80 countries and 105,000 employees at its owned and managed properties. With internationally renowned brands, Starwood is a fully integrated owner, operator and franchisor of hotels and resorts including: St. Regis, The Luxury Collection, Sheraton, Westin, Four Points by Sheraton, W brands, as well as Starwood Vacation Ownership, Inc., one of the premier developers and operators of high-quality vacation interval ownership resorts. For more information, please visit www.starwood.com.