Starwood has signed an agreement to sell the W
San Francisco for $90 million to Keck Seng Investments (Hong Kong)
Limited, a hotel investment and property development company
listed on the Hong Kong stock market.
The sales price is immediately accretive
to earnings and represents a multiple of over 14X anticipated 2009
The buyer is well-known to Starwood and currently owns
three other Starwood hotels.
Starwood has retained a
long-term management agreement to continue operating the hotel as
The W brand continues to grow globally, and is poised to more
than double its footprint from 25 hotels today to 60 hotels by
The sale, which is subject to customary closing conditions,
is expected to close on July 30, 2009.
The sale of the W San
Francisco represents one of a few select asset dispositions that
Starwood is pursuing to further reduce its debt levels.
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