Starwood Hotels & Resorts has sold its 219-room Turnberry golf and hotel resort in Scotland to Dubai-based investment firm Leisurecorp for £55m.
Under the terms of the deal, announced today, Starwood will continue to operate the five-star resort, the host venue for the 2009 Open Championship, with a 30-year-plus management contract. The sale is expected to complete on 31 October.
Leisurecorp, which already works with Starwood on a number of developments, has committed to "significant investment" in the resort.
This includes a re-development and re-launch of the hotel, which is due to close in late 2008 and will re-open ahead of the Open, under Starwood's Luxury Collection brand. It previously ran under the Westin banner.
Sultan Ahmed Bin Sulayem, chairman of Leisurecorp's parent company, Dubai World, said: "We are delighted to be able to extend our strong relationship with Starwood through the addition of this strategically important asset to our portfolio.
"Turnberry is a world-class destination and we look forward to playing our role in its future success."
Roeland Vos, president for Europe, Middle East & Africa at Starwood Hotels & Resorts added: "We look forward to completing the sale and working with Leisurecorp to release the full potential of Turnberry."
CBRE Hotels acted for Leisurecorp, while Jones Lang La Salle represented Starwood.
By Daniel Thomas
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