News for the Hospitality Executive |
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Barry Sternlicht's Starwood Capital and Hersha Hospitality
Partner to Build Premier Hotel Management Company;
Starwood Capital Will Contribute Capital, Deal Flow and Enterprise-building Resources
PHILADELPHIA and
GREENWICH, Conn., June 4, 2010 - Starwood Capital Group and Hersha Hospitality
Management ("HHM") announced today that they have entered into an agreement
that will provide Hersha the resources to expand its highly successful
platform across the United States. The transaction brings together two
of the best known names in the real estate and hotel sectors. Starwood
Capital is one of the world's leading investment firms focused on real
estate, having invested more than $24 billion in assets since its inception,
while the privately held HHM is a leading third-party hotel management
company operating more than 70 hotels in major metropolitan markets. Under
the terms of the agreement, Starwood Capital has purchased a 49.9% stake
in HHM, for an undisclosed amount.
The new partnership will seek to capitalize on the ongoing industry recovery by aggressively pursuing select-service and full-service hotel management opportunities on a national scale. In addition, the venture will also target strategic investments in turnaround and opportunistic select-service hotels throughout the country and full-service hotels in select suburban markets. "We are very pleased to be partnering with HHM," said Barry Sternlicht, Chairman and CEO of Starwood Capital. "Over the years, we have built a close relationship with Hersha's leadership team and admire its best-in-class operating capabilities and ability to create value for the properties it manages. Starwood Capital will contribute capital, deal flow and enterprise-building resources to help leverage HHM's operating expertise across the country and across a broader spectrum of investments." "Partnering HHM with Starwood Capital allows us to leverage the considerable strengths of both organizations," Naveen Kakarla, President and Chief Executive Officer of HHM said. "Barry Sternlicht and Starwood Capital Group have demonstrated keen judgment, innovative vision, and an unparalleled access to capital across several real estate cycles. HHM, I believe, has struck the fine balance between building a high quality multi-brand platform that is both scalable and process-oriented, while preserving a hands-on, entrepreneurial approach to managing hotels and projects." HHM currently operates more than 70 hotels in metropolitan regions in Boston, Connecticut, New York, New Jersey,Philadelphia and Washington, D.C. The company provides turnkey management services for properties with leading brand affiliations, including Marriott, Hilton, Hyatt, Starwood and InterContinental Hotels Group and, for independent and boutique hotels. The company's executive headquarters will remain in Philadelphia, PA and its operations and administrative headquarters will remain in Harrisburg, PA. Starwood Capital Group is one of the world's leading private investment firms focused on real estate. In addition, Mr. Sternlicht is the founder of Starwood Hotels & Resorts, where he served as Chairman and CEO for nearly 10 years as the company grew into one of the world's leading hotel and leisure companies. Mr. Sternlicht also serves as the Chairman of Groupe du Louvre, which owns some the world's best-known luxury hotels, including the Crillon in Paris, and one of the world's largest budget hotel companies, Louvre Hotels, with more than 800 hotels across Europe. In addition, a controlled affiliate of Starwood Capital acquired Golden Tulip out of bankruptcy in 2009, adding a network of more than 230 hotels in almost 40 countries to its portfolio. Starwood Capital Group
Hersha Hospitality Management
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Contact:
Starwood Capital Group
Hersha Hospitality Management
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Also See: | Hersha Hospitality Management Adds 1,000-plus Rooms to Portfolio, Outlines Aggressive Growth Plans Via Third-Party Management/Joint Ventures / October 2009 |