Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) announced today that the Company 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 EBITDA. The buyer is well-known to Starwood and currently owns three other Starwood hotels. Additionally, Starwood has retained a long-term management agreement to continue operating the hotel as a W. The W brand continues to grow globally, and is poised to more than double its footprint from 25 hotels today to 60 hotels by 2011. 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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