Starwood Files Form 10 in Planned Spin-Off of Vacation Ownership Business

Starwood Hotels & Resorts has reached a key milestone in the move to spin-off of its vacation ownership business into a separate publicly traded company.

Starwood Vacation Ownership (SVO), which will be named Vistana Signature Experiences, Inc. upon completion of the spin-off transaction, has filed an initial Form 10 Registration Statement with the U.S. Securities and Exchange Commission.

The spin-off will be effected through a pro rata distribution of the new entity’s stock to Starwood stockholders, and is expected to be completed in the fourth quarter of 2015.

Adam Aron, Starwood’s Chief Executive Officer on an interim basis, said, “The filing is a pivotal step toward the planned spin-off of our vacation ownership business, which will allow us to continue participating in the timeshare industry while seeking to create stockholder value for both companies. The spin-off will also further advance our asset light strategy with the planned contribution of five Starwood-owned resort assets to create future timeshare inventory for the stand-alone company.”

SVO, previously known as Vistana, has a rich history, opening its doors in 1980 with the debut of what was then Vistana Resort in Orlando, FL. The company was acquired by Starwood in 1999 and later renamed Starwood Vacation Ownership to expand its collection of villa resorts under the Westin and Sheraton brands. Today, SVO is a provider of upper upscale leisure travel and vacation ownership products, with resorts in some of the most desirable destinations throughout the U.S., Hawaii, Mexico and the Caribbean.

Following completion of the spin-off transaction, Vistana Signature Experiences will initially encompass nineteen vacation ownership resorts and three fractional residence properties with additional hotel asset inventory expected to be transferred from Starwood as part of the transaction. Owners will continue to enjoy privileged access to the SPG program, providing a world-class portfolio of resorts for the SVO owner base.

“As we continue to work toward the successful launch of our company, we’re pleased to unveil our corporate name, Vistana Signature Experiences, which will take effect upon completion of the spin-off,” said Matthew Avril, Chief Executive Officer-Elect of Vistana Signature Experiences. “This new yet familiar name builds on our 35-year history and recognized reputation for excellence. While our name is familiar, our new look represents the exciting future opportunities that exist for our owners, associates, guests and investors as we continue to deliver exceptional experiences that our travelers have come to expect.”

The spin-off remains subject to the approval of the Board of Directors of Starwood Hotels & Resorts Worldwide, Inc. and the satisfaction of certain other customary conditions, including the effectiveness of the Form 10 Registration Statement. Starwood may, at any time until the closing of the separation, decide to abandon, modify or change the terms of the separation.

Starwood has retained Citigroup Global Markets Inc. and Credit Suisse as financial advisers and Latham & Watkins LLP as legal counsel to advise on the planned spin-off.

A copy of the Form 10 Registration Statement is available on the investor relations section of Starwood’s website.