WHITE PLAINS, N.Y., Jun 19, 2003 (BUSINESS WIRE)—Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) announced today that it has completed the previously announced sale of its four hotels and a 51% interest in its undeveloped land assets at Costa Smeralda in Sardinia, Italy, to Los Angeles-based Colony Capital, LLC for 290 million Euros (approximately $340 million) plus additional consideration. Starwood will continue to manage the hotels under a long-term contract and will retain a 49% stake in the undeveloped land.
“We are pleased to have completed this transaction at an attractive price for our shareholders,” said Barry S. Sternlicht, Starwood`s Chairman and CEO. “Further, we are delighted to continue to manage these extraordinary resorts and, working with Colony, we hope to enhance the value of these hotels and the undeveloped land.”
According to Sternlicht, the company plans to close its sale of the Hotel Principe di Savoia to the London-based Dorchester Group LTD for 275 million Euros or approximately $320 million within the next few weeks, as well as its sale of a 14-hotel portfolio in North America during the third quarter. An additional four-hotel portfolio sale in North America is expected in 2003. All together, proceeds from these sales will total approximately $1.1 billion and will be used to pay down existing debt and for other general corporate uses.
Costa Smeralda, or the Emerald Coast, is a world-class, luxury resort destination enjoying an excellent reputation among the world`s most privileged travelers. Located on the northern coast of the Italian island of Sardinia, Costa Smeralda is in the heart of the Mediterranean Sea and at the crossroads of international yachting routes.
Tom Barrack, Chairman and CEO of Colony Capital, stated, “We are privileged to be the steward of the great legacy of the Costa Smeralda gem, given birth by the Aga Khan and the Sardinian people. Our goal is simply to complete that vision.”
Under the agreement, Colony Capital is buying from Starwood`s CIGA portfolio of hotels and resorts: Hotel Cala di Volpe, Hotel Pitrizza, Hotel Romazzino, and Cervo Hotel & Conference Center; the Porto Cervo Marina and Shipyard; the Pevero Golf Club; a 51% stake in nearly 6,000 acres of undeveloped oceanfront land; and some ancillary facilities. The hotels total 382 rooms.
Colony Capital, LLC (www.colonyinc.com), founded in 1991, is a private, international investment firm focusing primarily on real estate-related assets. To date, the firm has invested approximately $8 billion in commercial and residential real estate transactions worldwide. Colony is led by Thomas J. Barrack, Jr., has a staff of more than 100, and is headquartered in Los Angeles, with offices in New York, Paris, Rome, Singapore, Seoul, Tokyo, Taipei, Shanghai and Hawaii.
Starwood Hotels & Resorts is one of the leading hotel and leisure companies in the world with more than 750 properties in 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
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