Starwood Hotels Continues Asset-Light Strategy with the Sale of W New Orleans to Chesapeake Lodging Trust
Sale Marks Second Starwood Hotel in New Orleans Sold to Chesapeake Lodging Trust This Year
STAMFORD, Conn.- April 25, 2013 - (BUSINESS WIRE) - Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) today announced that it has completed the sale of W® New Orleans to Chesapeake Lodging Trust (NYSE: CHSP) for $65 million. This sale comes on the heels of the sale of W New Orleans – French Quarter to Chesapeake Lodging Trust in March 2013.
“We are delighted to further expand our partnership with Chesapeake Lodging Trust with the sale of our second hotel in New Orleans this year,” said Simon Turner, President of Global Development for Starwood. “Starwood continues its systematic pursuit of an asset-light strategy by selling hotels to owners who share our vision for each property.”
Mr. Turner added: “We are fortunate to have a quality portfolio of owned assets in a number of high barrier-to-entry markets. With continuing improvements in hotel industry fundamentals, historically low interest rates and improving capital markets conditions, we’ve seen a meaningful increase in buyer interest in our assets from an increasingly diverse global buyer universe.”
As part of the agreement, Chesapeake Lodging Trust will renovate the 410-room hotel located at 333 Poydras Street. Walking distance to the boutiques, art galleries and jazz clubs of the city’s historic French Quarter and the Ernest N. Morial Convention Center, W New Orleans is also convenient to the Riverwalk Marketplace, Harrah’s Casino and the Warehouse District.
The hotel is Chesapeake Lodging Trust’s fifth Starwood property, joining W New Orleans – French Quarter, W Chicago – City Center, W Chicago – Lakeshore and Le Méridien San Francisco.
About Starwood Hotels & Resorts Worldwide, Inc.
Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with 1,134 properties in nearly 100 countries and 171,000 employees at its owned and managed properties. Starwood is a fully integrated owner, operator and franchisor of hotels, resorts and residences with the following internationally renowned brands: St. Regis®, The Luxury Collection®, W®, Westin®, Le Méridien®, Sheraton®, Four Points® by Sheraton, Aloft®, and ElementSM. The Company boasts one of the industry’s leading loyalty programs, Starwood Preferred Guest (SPG), allowing members to earn and redeem points for room stays, room upgrades and flights, with no blackout dates. Starwood also owns Starwood Vacation Ownership, Inc., a premier provider of world-class vacation experiences through villa-style resorts and privileged access to Starwood brands. For more information, please visit www.starwoodhotels.com.
(Note: This press release contains forward-looking statements within the meaning of federal securities regulations. Forward-looking statements are not guarantees of future performance or events and involve risks and uncertainties and other factors that may cause actual results or events to differ materially from those anticipated at the time the forward-looking statements are made. 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 and events 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.)
Starwood Hotels & Resorts