Thursday October 31st, 2013 - 9:57AM
STAMFORD, CT—Starwood Hotels & Resorts Worldwide, Inc. completed the sale of both The Westin San Francisco Airport and Aloft San Francisco Airport to a venture led by Ultima Hospitality for $125 million.
As part of the agreement, the hotels will be managed under long-term license agreements by Ultima Hospitality and continue to fly the Westin and Aloft brand flags.
“This sale underscores Starwood’s ongoing commitment to an asset-light strategy as we continue to pursue opportunities to sell owned real estate at the right time, on the right terms, to the right owners creating value for our shareholders,” stated Simon Turner, president of global development for Starwood. “With favorable capital market conditions and improving hotel industry fundamentals, we’re seeing continued strong investor interest in our remaining assets. Our goal is to form relationships with partners like Ultima Hospitality who share our vision for the assets they purchase to be brand-enhancing properties.”
The Westin San Francisco Airport features 397 guestrooms, 22,000 sq. ft. of meeting space, a fitness center, an indoor pool and whirlpool, a business center, and Grill & Vine, which is a new restaurant concept that opened in January. As part of the agreement, Ultima will take over Starwood’s planned renovation of guestrooms and meeting spaces, to begin in February.
Aloft San Francisco Airport opened in September 2012 and was the brand’s first external conversion project. The 252-room hotel offers 672 sq. ft. of meeting space, an indoor splash pool and the brand’s signature W XYZ bar.
The Westin and Aloft site occupies approximately 14 acres, including 873 parking spaces, next to San Francisco International Airport.