Starwood Hotels has announced the completed sale of the 290-room Westin Philadelphia for $89 million to HEI Hospitality.The hotel will continue to fly the Westin flag under a long-term franchise agreement and Merritt Hospitality, a wholly owned subsidiary of HEI Hospitality, will operate the hotel. The 14-story property, which opened as a Ritz-Carlton in 1990, later converting to the Westin flag in 1999, is located at 17th and Chestnut Streets in a mixed-use complex that anchors the Philadelphia skyline with direct access to the upscale shops and boutiques at Liberty Place. HEI Hospitality expects to invest up to an additional $10 million to renovate the property.
The proceeds from the sale of this hotel begins Starwood’s
recently announced plan to sell $2-$4 billion in assets over the next 12 months beyond the $500 million that was already sold this year. The Company expects to use proceeds for share repurchase and for general corporate purposes.