Starwood Sells Westin & Aloft Property

As part of its asset-light strategy, leading hotelier Starwood Hotels & Resorts Worldwide Inc. (HOT) recently divested two properties – The Westin San Francisco Airport and Aloft San Francisco Airport – in San Francisco, Calif. to Ultima Hospitality for about $125 million. Post sale, the attributes will continue to operate under Starwood’s Westin and Aloft brands.

The 397 luxurious rooms of Westin San Francisco Airport hotel will undergo a complete renovation pursuing the sale. Aloft San Francisco Airport had been unveiled in late 2012 and underwent extensive makeover prior to its purchase. Both the properties are located near the San Francisco International Airport and are close to several Lot of money 500 companies.

Asset disposition remains a bright location for the company. Since late 2010, transition to an ‘asset light’ business model has gained momentum in the hotels plus REIT industry. Many other hoteliers such as Red Lion Resorts Corporation (RLH) plus Morgans Hotel Group Co. (MHGC) have got embarked on this strategy.

Asset sale remains a extensive strategy of Starwood for greater financial flexibility, which would help it develop through management and licensing arrangements instead of direct ownership of property. The company plans to deploy its capital to transform its possessed assets into lucrative acquisition goals. In the last four years ended 2012, it has earned $1 billion within cash through the sale of owned assets and strives to generate around $3 billion in hotel sales by 2016.

In the last two years, Starwood offloaded properties like W New Orleans, St . Regis Aspen, the Westin Gaslamp (San Diego), W City Center (Chicago) as well as the Boston Park Plaza. Management shows an increase in buyers’ interests, which, coupled with improving lodging industry basic principles, will lead to future asset sales.

Starwood holds the Zacks Rank #2 (Buy). Another hotelier currently performing well is definitely Choice Hotels International Inc. (CHH) carrying a Zacks Rank #2.

Read the Full Research Report on HOT
Read the Full Research Report on MHGC
Browse the Full Research Report on RLH
Read the Full Research Statement on CHH

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As part of its asset-light strategy, top hotelier Starwood Resorts & Resorts Worldwide Inc. (HOT) recently divested 2 properties – The Westin San Francisco Airport and Aloft San Francisco Airport – in San Francisco, Calif. in order to Ultima Hospitality for about $125 million. Post sale, the properties can continue to operate under Starwood’s Westin and Aloft brands.

The 397 luxurious rooms associated with Westin San Francisco Airport hotel can undergo a complete renovation following the purchase. Aloft San Francisco Airport was unveiled in late 2012 and underwent extensive makeover prior to its sale. Both properties are located near the San Francisco Airport terminal and are close to several Fortune five hundred companies.

Asset disposition remains a bright spot for the organization. Since late 2010, transition to an ‘asset light’ business model has gained momentum in the hotels and REIT industry. Many other hoteliers such as Red Lion Hotels Company (RLH) and Morgans Hotel Group Company. (MHGC) have set out on this strategy.

Asset sale remains a long-term strategy of Starwood for greater monetary flexibility, which would help it grow by means of management and licensing arrangements instead of direct ownership of real estate. The business plans to deploy its funds to transform its owned assets into lucrative acquisition targets. Within the last four years ended 2012, they have earned $1 billion in money through the sale of owned assets plus strives to generate around $3 billion dollars in hotel sales by 2016.

In the last two years, Starwood offloaded properties like W Brand new Orleans, St . Regis Aspen, the particular Westin Gaslamp (San Diego), W City Center (Chicago) and the Birkenstock boston Park Plaza. Management indicates a boost in buyers’ interests, which, along with improving lodging industry fundamentals, can lead to future asset sales.

Starwood holds a Zacks Rank #2 (Buy). Another hotelier currently performing well is Choice Hotels International Inc. (CHH) carrying the Zacks Rank #2.

Browse the Full Research Report on SIZZLING HOT
Read the Full Research Statement on MHGC
Read the Complete Research Report on RLH
Read the Full Research Report on CHH

Zacks Investment Research

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