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Starwood Signs an Agreement to Sell the W San Francisco
for $90 Million
Retains a Long-term Management
Contract
.
|
News for the Hospitality Executive |
Starwood Signs an Agreement to Sell the W San Francisco
for $90 Million
Retains a Long-term Management
Contract
.
 WHITE
PLAINS, N.Y.- July 8, 2009 - Starwood Hotels & Resorts Worldwide, Inc.
(NYSE: HOT) announced today that the Company has signed an agreement to
sell the W San Francisco for $90 million to Keck Seng Investments (Hong
Kong) Limited, a hotel investment and property development company listed
on the Hong Kong stock market. The sales price is immediately accretive
to earnings and represents a multiple of over 14X anticipated 2009 EBITDA.
The buyer is well-known to Starwood and currently owns three other Starwood
hotels. The 404 room W Hotel San Francisco is located at 181 3rd Street.
Additionally, Starwood has retained a long-term management agreement to continue operating the hotel as a W. The W brand continues to grow globally, and is poised to more than double its footprint from 25 hotels today to 60 hotels by 2011. The sale, which is subject to customary closing conditions, is expected to close on July 30, 2009. The sale of the W San Francisco represents one of a few select asset dispositions that Starwood is pursuing to further reduce its debt levels. About Starwood Hotels & Resorts Worldwide, Inc.:
Note: This press release contains forward-looking statements within the meaning of federal securities regulations. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties and other factors that may cause actual results to differ materially from those anticipated at the time the forward-looking statements are made. Further results, performance and achievements may be affected by general economic conditions, including the duration and severity of any global or regional economic downturns, the availability of financing alternatives at acceptable terms, the impact of war and terrorist activity, business and financing conditions, foreign exchange fluctuations, cyclicality of the real estate (including residential) and the hotel and vacation ownership businesses, operating risks associated with the hotel, vacation ownership and residential businesses. These risks and uncertainties are presented in detail in our filings with the Securities and Exchange Commission. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that results will not materially differ. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. |
| Contact:
Starwood Hotels & Resorts Worldwide, Inc.
. |
| Also See: | Michael Pace Named General Manager of W San Francisco, Replacing Toni Knorr Who Moves to St. Regis Hotel, San Francisco / August 2007 |
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