John Paulson’s hedge funds last quarter acquired a 7 percent stake in Starwood Hotels & Resorts Worldwide Inc., the lodging company that said it would explore strategic alternatives.

Paulson & Co., the New York-based money management firm run by the billionaire, held 12 million Starwood shares as of June 30, valued at $973 million, according to a Form 13F filed with the U.S. Securities and Exchange Commission. Paulson didn’t report holding any Starwood shares in the prior quarter.

Paulson is known for taking stakes in companies that are likely to be involved in takeovers. Starwood, the Stamford, Connecticut-based owner of brands including the W and St. Regis, announced on April 29 that it had hired Lazard Ltd. to evaluate options, setting the stage for a sale of the company. Starwood shares jumped 8.3 percent that day.

This article was written by Miles Weiss from Bloomberg and was legally licensed through the NewsCred publisher network.

Photo Credit: The exterior of the St. Regis Abu Dhabi. Starwood Hotels