Rooms Hotels

Starwood Sells Two San Francisco Hotels To Go Asset Light

Excerpt from Yahoo Finance

Nov 02, 2013 1:00 pm

Skift Take

Starwood and other major chains are finding that they don’t need the burdens of owning properties, and instead can be more flexible and get greater returns with management and licensing fees.

— Dennis Schaal

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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 properties will continue to operate under Starwood’s Westin and Aloft brands.

Asset sale remains a long-term strategy of Starwood for greater financial flexibility, which would help it grow through management and licensing arrangements instead of direct ownership of real estate.

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