Deutsche Bank, Jones Lang LaSalle Hotels and JP Morgan are advising Starwood on the disposition of the properties. While Starwood has previously stated its intention to market the CIGA properties, yesterday marks the first time the company has indicated that it will entertain offers for individual or groups of assets as well as offers for the entire portfolio. Starwood intends to continue managing the assets under various brands. Currently, the CIGA portfolio operates under the St Regis, Luxury Collection Westin and Sheraton brands.
"The CIGA portfolio is comprised of trophy assets that are unrivaled in the industry and we expect considerable interest and aggressive pricing," states Starwood CFO Ron Brown. "EBITDA growth for this portfolio has been among our fastest and, consequently, this has been a very difficult decision but one that we believe will best recognize and enhance shareholder value."
The Ciga Group's 25 Eurpean assets include luxury hotels such as the Gritti Palace and Danieli in Venice, the St. Regis Grand and Westin Excelsior in Rome, the Grand and Excelsior in Florence, the Principe di Savoia in Milan, the Westin Palace in Madrid, the Imperia in Vienna, and four hotels in Sardinia's Costa Smeralda including the Cala di Volpe and Pitrizza.
CIGA's Sardinian assets also include golf courses and marinas as well as 5,900 acres of land, several miles of which are beachfront property. According to company officials, the non-hotel assets complement the four resort properties and provide future development potential for the portfolio.
As of Dec. 31, 2001, the White Plains-based hotel and leisure firm has a portfolio of 738 owned, managed and franchised hotels in 80 countries with roughly 227,000 rooms. Of these, 162 hotels are owned or controlled by Starwood, 263 are managed by Starwood on behalf of third-party owners and 313 are franchised, for which Starwood receives fees.
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