NYC's St. Regis May Be on Block in Starwood Hotel Sale

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bloomberg.com
20/2/2018

Starwood Hotels & Resorts Worldwide Inc. may be in talks to sell hotels including the St. Regis New York as part of its goal of reducing its property holdings by about $1 billion this year, Chief Executive Officer Tom Mangas said.

Sovereign-wealth funds and insurance companies continue to have a strong appetite for hotels in gateway cities as they seek to diversify their holdings, Mangas said on Starwood’s fourth-quarter earnings conference call Thursday. He declined to comment in detail when asked about the prospect of selling assets including the St. Regis in Manhattan and the Westin Maui Resort & Spa because talks might be under way, he said.

“There is high interest for assets that are one of a kind, like the St. Regis New York,” Mangas said in response to a question about possible interest in the Fifth Avenue hotel from sovereign-wealth funds and high-net-worth buyers. “I don’t want to comment too much about where valuations are or will be because we might be working on trying to lock down specific valuations.”

Starwood on Tuesday said it completed the sale of the luxury Hotel Imperial in Vienna to Al Habtoor Investment, part of a United Arab Emirates conglomerate, for $78.8 million. On Thursday, Mangas said the price per room was about $571,000, underscoring that values for high-quality hotel properties remain strong.

Last year, Barry Sternlicht’s Starwood Capital Group, which isn’t affiliated with Starwood Hotels, sold New York’s luxury Baccarat Hotel to a unit of China’s Sunshine Insurance Group for $230 million, or about $2 million a room, the second-highest price on that basis for a New York hotel, behind the Plaza.

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