Starwood Hotels sells 35 worldwide properties in $4b deal

12 April 2006

Starwood Hotels and Resorts Worldwide has agreed terms to sell 35 worldwide hotels to US hotel real estate company Host Marriott Corporation in a massive $4b (£2.3b) deal

The US hotel company has closed on the sale of 28 of the 35 properties. Deals have yet to be finalised on a further seven hotels in Europe and Asia, including the Sheraton Skyline in London.

The hotels, most of which are in the USA, will continue to be managed by Starwood under long-term management agreements.

The total value of the 35 hotels - including cash, stock and the assumption of debt - is approximately $4.2b (£2.4b).

Starwood shareholders have received 66% of the proceeds in the form of Host stock shares and $119m in cash.

The remaining income from the sale relates to the seven extra hotels where deals have been deferred due to lapsed notice periods.

"We are very pleased that we have completed the sale of these hotels to Host at an attractive price," said Steven J Heyer, Starwood's chief executive officer.

Starwood has approximately 850 properties worldwide in more than 95 countries. Its brands include Sheraton, Le Meridien, St Regis and Westin.

Portfolio of hotels

North America

11 Sheraton hotels: San Diago, New York, Boston, Parsipanny, Indianapolis, Needham, Stamford, Providence, Tampa, Braintree, Milwaukee and Tucson
Nine Westin hotels: Washington, Indianopolis, Seattle, Noston, Rancho Mirage, Denver, Cincinnati, Los Angeles and Costa Mes
Two W hotels: New York and Seattle
One St Regis: Houston Capitol Hill Suites, Washington

International