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to Acquire the Desert Inn Hotel and Casino for Approximately $270 million |
WHITE PLAINS, N.Y., April 28, 2000 - Starwood
Hotels Resorts Worldwide, Inc. (NYSE: HOT) announced today a definitive
agreement to sell the Desert Inn Hotel and Casino in an all cash deal for
approximately $270 million to Stephen A. and Elaine Wynn.
The transaction is not subject to any due diligence, financing or licensing conditions. The sale agreement includes the receipt of a $30 million nonrefundable deposit. The transaction is expected to close no later than June 30 of 2000. The actual proceeds to the company will exceed the purchase price due to certain adjustments related to the prior agreement for the sale of the asset to Sun International. Starwood will not incur any capital gains tax on the sale. Proceeds of the sale will be used to pay down debt and to repurchase stock under the company�s existing share repurchase authorization plan. The agreement with Mr. and Mrs. Wynn also includes a right of first refusal in favor of Starwood for future development of timeshare at the asset. �Though we received several attractive offers for the Desert Inn, the
speed and certainty of this transaction made it the most attractive to
shareholders,� said Barry S. Sternlicht, chairman and chief executive officer
of Starwood Hotels Resorts. �The sale completes our exit from gaming and
further strengthens our balance sheet. Net of cash and certain accounts
receivable acquired in the Vistana timeshare acquisition, our debt will
have been reduced from more than $9 billion in the third quarter of 1999
to approximately $ 5.2 billion as of June 30. Given this and the current
strength of our operations, we are very optimistic we will achieve an investment
grade rating this year.�
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Katie Meyer VP, Public Relations of Starwood, 914-640-8247 http://www.starwoodlodging.com |