The 404-room hotel was part of the CIGA portfolio of hotels and resorts. The transaction represents a portion of the $500 million of hotel assets that Starwood has announced it plans to sell by the end of 2003.
The sale comes on the heels of Starwood's sale of four Costa Smeralda, Sardinia, hotels to Los Angeles-based Colony Capital for $340 million. In that transaction, Colony also acquired a 51% interest in its 6,000 acres of undeveloped land on the island, which is located in the heart of the Mediterranean Sea and at the crossroads of international yachting routes. Starwood will continue to manage the hotels under a long-term contract.
Starwood Chairman and CEO Barry Sternlicht says Starwood also expects to close its sale of a 14-hotel, 4,171-room portfolio in North America during the third quarter and an additional four-hotel, 1,392-room portfolio sale in North America in the balance of the year. Proceeds from these four sales will total approximately $1.1 billion and will be used to pay down existing debt and for other general corporate uses, says Sternlicht.
In May, Starwood said it had signed a binding agreement to sell the 14-hotel portfolio for approximately $312 million. The hotels--eight Sheraton, two Westin, one Marriott, two Hilton and one independent located in 11 states--are being sold to a group of investors including Olympus Real Estate Partners, Rockwood Capital, Prudential Real Estate Investors and HEI Hospitality. The Starwood branded hotels in the portfolio will remain under their current flags with an additional hotel planned for conversion to a Starwood flag. The four-hotel portfolio is comprised of 2 Sheraton hotels and 2 Marriott hotels located in 4 states.
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