Starwood Hotels & Resorts Continues Asset-Light Strategy with the Sale of The St. Regis Florence and The Westin Excelsior Florence
The St. Regis Florence and The Westin Excelsior Florence Will Continue to be Operated by Starwood Hotels Under a Long-Term Management Contract
DUBAI, United Arab Emirates - June 14, 2016 - (BUSINESS WIRE) - Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) today announced that it has closed on the sale of The St. Regis Florence and The Westin Excelsior Florence to Nozul Hotels & Resorts, the owner of The Gritti Palace, Venice and W Doha Hotel, and a wholly owned subsidiary of “Jaidah Holdings” for €190 million (approximately $213 million USD). Starwood will continue to operate the hotels under the St. Regis and Westin brand flags under new long-term management agreements.
Thomas Mangas, Chief Executive Officer of Starwood Hotels & Resorts Worldwide, Inc. said, “As we work to prepare for the close of our merger with Marriott International, we continue to vigorously compete in the market, grow our brands, and execute against our strategy to create value for Starwood’s shareholders. Asset dispositions remain a key part of that strategy and, following a year where we exceeded our target, we have already disposed of nearly $500 million of assets this year, including this sale, the sale of Hotel Imperial, and the transfer of five properties as part of Vistana Signature Experiences’ separation from Starwood.”
Simon Turner, President of Global Development for Starwood said, “The sale of The St. Regis Florence and The Westin Excelsior Florence hotels following our recent sale of The Gritti Palace in Venice to Jaidah Holdings highlights our ongoing commitment to dispose of our owned assets to the right long-term partners to create both immediate and long-term shareholder value. We see strong interest in our remaining assets from a diverse array of investors worldwide with other potential transaction discussions ongoing.”
Dr. Mazen Jaidah, the Executive Chairman of Jaidah Holdings stated that “Based on our long-term value creation strategy, we continue to invest in high quality assets that are resilient to market fluctuations. As with our previous acquisition in Venice, the Florence properties are destinations for their cultural and historical values.”
Nawaf Jaidah, the Executive Vice Chairman of Jaidah Holdings added, “We are very pleased to expand our presence in Italy with Starwood by acquiring these two beautiful properties. The addition of the St. Regis and Westin in Florence to the Gritti Palace in Venice emphasizes our commitment to establish a portfolio of trophy assets in major European destinations.”
“I am delighted that Jaidah Holdings have purchased these landmark Florentine assets as they have proven to be excellent owners and partners with whom we now collaborate on four wonderful hotels, including W Doha, the first W Hotel in the Middle East, and The Gritti Palace in Venice,” said Michael Wale, President, Europe, Africa and the Middle East for Starwood.
The St. Regis Florence was originally built in 1432 by Filippo Brunelleschi and is considered to be one of the most significant buildings in the city for its artistic and historical value. The hotel on the banks of the Arno River was converted from a Luxury Collection to a St. Regis Hotel in November 2011. It features 99 guestrooms, including 19 suites, approximately 6,500 square feet of meeting space, the Iridium Suites Spa My Blend by Clarins and three restaurants and lounges. Partially renovated in 2014 and again in 2016, The Westin Excelsior Florence features 171 rooms, including 15 suites, approximately 5,700 square feet of meeting space, a WestinWORKOUT® fitness center and two food and beverage outlets, including the rooftop bar and restaurant SE-STO on Arno.
About Starwood Hotels & Resorts Worldwide, Inc.
Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with more than 1,300 properties in some 100 countries and approximately 188,000 employees at its owned and managed properties. Starwood is a fully integrated owner, operator and franchisor of hotels, resorts and residences under the renowned brands: St. Regis®, The Luxury Collection®, W®, Westin®, Le Méridien®, Sheraton®, Tribute Portfolio™, Four Points® by Sheraton, Aloft®, and Element®, along with an expanded partnership with Design Hotels™. The company also boasts one of the industry’s leading loyalty programs, Starwood Preferred Guest (SPG®). Visit www.starwoodhotels.com for more information and stay connected @starwoodbuzz on Twitter and Instagram and facebook.com/Starwood.
About Jaidah Holdings
Jaidah Holdings is a Qatar based conglomerate, whose main focus is the long-term investment in the sectors of energy & engineering services, real estate development and hotels. In addition to The St. Regis Florence and The Westin Excelsior Florence, Jaidah Holdings also owns the W Doha Hotel & Residences, the first W brand hotel in the Middle East and North Africa, and The Gritti Palace, a Luxury Collection Hotel, Venice. For more information, please visit www.jaidahholdings.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 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 impact of war and terrorist activity, natural disasters, business and financing conditions (including the condition of credit markets in the U.S. and internationally), 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, relationships with associates and labor unions, customers and property owners, the impact of the internet reservation channels, our reliance on technology, domestic and international political and geopolitical conditions, competition, governmental and regulatory actions (including the impact of changes in U.S. and foreign tax laws and their interpretation), travelers’ fears of exposure to contagious diseases, risk associated with the level of our indebtedness, risk associated with potential acquisitions and dispositions and the introduction of new brand concepts and other risks and uncertainties. These risks and uncertainties are presented in detail in our filings with the Securities and Exchange Commission.
SOURCE Starwood Hotels & Resorts Worldwide, Inc.
Starwood Hotels & Resorts Worldwide, Inc.