Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) today announced that it has completed the sale of Aloft and Element Lexington to Rockwood Capital for $36 million. As part of the agreement, the dual-hotel development in Lexington, Massachusetts will be managed under long-term license agreements by Paramount Hotel Group and continue to fly the Aloft and Element flags.
“This sale is consistent with Starwood’s asset-light strategy as we continue to seek opportunities to sell owned real estate at the right time to the right owners,” said Simon Turner, President of Global Development for Starwood. “Starwood completed over $500 million of hotel asset sales in 2012, and investor interest in the company’s other owned assets has increased markedly as hotel industry fundamentals and capital markets have continued to improve.”
“We are thrilled to be expanding our relationship with Starwood. We view these properties as an excellent fit with our strategy to acquire strong income-producing properties in one of our key target markets on the east coast,” said Tony Larino, Managing Director and Head of Lodging at Rockwood Capital.
Built by Starwood and opened in 2008, Aloft Lexington and Element Lexington share the same parcel of land at 727 Marrett Road, close to the 128 Mass Turnpike. Home to numerous technology businesses, Lexington offers a charming combination of historical sites, farm stands and greenhouses, as well as convenient access to Boston's thriving business community and leisure attractions.
Aloft Lexington offers 136 guest rooms, indoor pool, w xyz smbar, fitness center and meeting space. Element Lexington features 123 guestrooms, fitness facility and meeting space. The two hotels share 297 parking spaces.
About Rockwood Capital
Rockwood Capital, LLC is a real estate investment firm that provides equity capital combined with real estate expertise for repositioning, recapitalization, development and redevelopment of retail, hotel, residential, office and research and development space in key markets throughout the United States. Since 1990, Rockwood and its principals have invested on behalf of their clients approximately $13.4 billion of real estate through eight value-add vehicles and three separate accounts. Today, Rockwood is an 82 person real estate investment firm with offices in White Plains, NY, San Francisco, CA, and Los Angeles, CA and manages a portfolio of approximately $2.6 billion of net equity value in approximately $6.6 billion of gross real estate value. Rockwood’s investors include public and private pension funds, endowments, foundations, insurance companies, fund of funds, high net worth individuals and family offices.
About Paramount Hotel Group
Paramount Hotel Group is a third-party, independent management and ownership group that focuses on hotel operations, acquisition and development opportunities, construction management and technical services support. Paramount is solely focused on commercial hotels within the full service, select service and extended stay sectors. Together with select capital partners, Paramount and its principals have developed, acquired and operated over 200 hotels throughout the United States. Additional information about the company may be found at www.paramounthotelgroup.com.
About Starwood Hotels & Resorts Worldwide, Inc.
Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with 1,134 properties in nearly 100 countries and 154,000 employees at its owned and managed properties. Starwood is a fully integrated owner, operator and franchisor of hotels, resorts and residences with the following internationally renowned brands: St. Regis®, The Luxury Collection®, W®, Westin®, Le Méridien®, Sheraton®, Four Points® by Sheraton, Aloft®, and ElementSM. The Company boasts one of the industry’s leading loyalty programs, Starwood Preferred Guest (SPG), allowing members to earn and redeem points for room stays, room upgrades and flights, with no blackout dates. Starwood also owns Starwood Vacation Ownership, Inc., a premier provider of world-class vacation experiences through villa-style resorts and privileged access to Starwood brands. For more information, please visit www.starwoodhotels.com.
(Note: This press release contains forward-looking statements within the meaning of federal securities regulations. Forward-looking statements are not guarantees of future performance or events and involve risks and uncertainties and other factors that may cause actual results or events to differ materially from those anticipated at the time the forward-looking statements are made. These risks and uncertainties are presented in detail in our filings with the Securities and Exchange Commission. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that results and events will not materially differ. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.)