Starwood has sold Sheraton on the Park in Sydney, Australia to Sunshine Insurance Group Corporation for AUS$463million, or US$399 million.

Starwood will continue to operate the hotel as a Sheraton under a long-term management contract.

“We are pleased to advance our asset-light strategy with the sale of the iconic Sheraton on the Park hotel and look forward to working closely with SIG to ensure its continued success,” said Simon Turner, president of global development for Starwood.

“The terms of this sale underscore the strength of the Sheraton brand and the success of this hotel, as well as the tremendous value of this property in a high barrier to entry market.”

Turner added: “We’re continuing to see strong investor interest around the world for our remaining assets, and remain committed to finding the right owners and partners while securing long-term management contracts in order to create value for our shareholders.”

Ideally located opposite Hyde Park, Sheraton on the Park has won numerous accolades including New South Wales Tourism’s Hall of Fame awards for Best Luxury Accommodation and the title of Australia’s Leading Hotel from World Travel Awards.

The hotel features 557 guest rooms, full-service dining, a Sheraton Club Lounge, rooftop health club, indoor heated pool, and spa with spectacular city views.

“Sheraton on the Park will help diversify our holdings by giving us a trophy asset in Sydney – a leading travel destination and an important financial centre in Asia Pacific,” said the executive director of SIG’s acquisition team.

“As Starwood’s largest and most global brand, Sheraton has cultivated a loyal following by offering travellers a stylish, comfortable atmosphere and a social guest experience.”

Starwood continues to expand its portfolio in Australia and the Pacific through management and franchise agreements.

The company currently operates 14 hotels in Australia, including the recently opened Four Points by Sheraton Brisbane and Sheraton Melbourne Hotel.

Upcoming openings include Aloft Perth Rivervale, The Westin Perth and W Brisbane in 2017, marking the brand’s re-entry into the Pacific region.