WHITE PLAINS, N.Y., Jul 7, 2003 (BUSINESS WIRE)—Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) announced today that it has completed the sale of 12 non-strategic domestic hotels for approximately $300 million to a group of investors including Olympus Real Estate Partners, Rockwood Capital, Prudential Real Estate Investors and HEI Hospitality. The portfolio of 12 hotels includes 3,678 rooms and is comprised of 6 Sheratons, 2 Westins, 1 Marriott, 2 Hiltons and 1 independent property. The 8 Starwood branded hotels will remain under their current flags and the Hilton Novi will be converted to a Sheraton. 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 Company expects to use proceeds from this sale to pay down existing debt, including the retirement of $250 million of Sheraton Holding (f/k/a ITT) bonds when they mature in November 2003, and for general corporate purposes. In addition, as a result of the recently completed sale of the Principe di Savoia hotel and the sale of the Company`s Costa Smeralda, Sardinia hotels, the Company has now fully repaid its 450M Euro credit facility. So far in 2003, the Company has realized total proceeds of approximately $955 million from hotel asset sales. The Company also successfully completed an amendment of its senior corporate credit facility, with a consortium of lenders led by Deutsche Bank and JPMorgan Chase, modifying certain financial covenants to allow for additional flexibility in the current operating environment. The senior corporate credit facility consists of a $300 million term loan and a $1.0 billion revolving loan. The amendment received 100% lender approval.
The Company expects to complete the sale of 6 additional non-strategic domestic hotels later this year. Proceeds from these additional asset sales will bring total proceeds from hotel asset sales in 2003 to approximately $1.1 billion.
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.
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