EX-99.6 14 c04218exv99w6.htm PRESS RELEASE exv99w6
 

EX 99.6
Contact: Alisa Rosenberg
(914) 640-5214
STARWOOD HOTELS & RESORTS WORLDWIDE, INC. ANNOUNCES CLOSING OF SALE OF
HOTEL PORTFOLIO TO HOST
WHITE PLAINS, NY – (BUSINESS WIRE) – April 10, 2006 – Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) (“Starwood”) announced today that it has closed on a sale of 28 hotels – including hotels under the Sheraton, W, Westin, St. Regis and Luxury Collection brands – to Host Marriott Corporation (NYSE: HMT) (“Host”). The hotels will remain in the Starwood system and continue to be managed by Starwood under long-term management agreements.
The total value of the transaction for the 35 hotels in the entire portfolio (including cash, stock, and the assumption of debt) is approximately $4.23 billion. Starwood shareholders have directly received $2.8 billion or 66% of the proceeds in the form of Host stock valued at $2.68 billion based on Host’s $20.53 closing price on Friday, April 07, 2006, and $119 million in cash. Starwood has received approximately $738 million today, $600 million in cash, $77 million in the form of property level debt which Host has assumed and $61 million in Host stock. The remaining proceeds relate to seven hotels in Europe and Asia, where the closing has been deferred as a result of certain notice periods and consents that have not yet lapsed or been received. These proceeds will be received by Starwood in the form of $661 million in cash and $31 million in the form of property level debt which Host will assume when those sales are closed. As provided for in the merger agreement, Starwood previously elected to remove 3 Canadian hotels from the original portfolio and reduced the cash portion of the transaction by approximately $276 million, because Starwood was unable to receive a favorable tax ruling.
“We are very pleased that we have completed the sale of these hotels to Host at an attractive price and were able to return 66% of the proceeds directly back to our shareholders,” said Steven J. Heyer, Starwood Chief Executive Officer. “We have entered into great, long-term management contracts on these hotels with an excellent partner. This transaction represents a major milestone as we evolve our business to balance asset ownership with our fee based business, while continuing to drive growth in our vacation ownership business. We have created a higher growth, more capital efficient and less cyclical business with tremendous balance sheet flexibility to fund growth and return additional value to our shareholders.”
Portfolio of hotels
             
North America
Sheraton   Location   # of Rooms
Sheraton San Diego Hotel & Marina
  San Diego, CA     1,044  
Sheraton Boston Hotel
  Boston, MA     1,216  
Sheraton New York Hotel & Towers
  New York, NY     1,746  
Sheraton Hotel Parsippany
  Parsippany, NJ     370  
Sheraton Indianapolis
  Indianapolis, IN     560  
Sheraton Needham Hotel
  Needham, MA     247  

 

 

             
North America
Sheraton   Location   # of Rooms
Sheraton Stamford Hotel
  Stamford, CT     448  
Sheraton Providence Airport Hotel
  Providence, RI     206  
Sheraton Suites Tampa Airport
  Tampa, FL     259  
Sheraton Hotel Braintree
  Braintree, MA     374  
Sheraton Milwaukee Brookfield Hotel
  Brookfield, WI     389  
Sheraton Tucson Hotel & Suites
  Tucson, AZ     216  
             
Westin   Location   # of Rooms
Westin Grand, D.C.
  Washington D.C.     263  
Westin Indianapolis
  Indianapolis, IN     573  
Westin Seattle
  Seattle, WA     891  
Westin Waltham Boston
  Boston, MA     346  
Westin Mission Hills Resort
  Rancho Mirage, CA     512  
Westin Tabor Center
  Denver, CO     430  
Westin Cincinnati
  Cincinnati, OH     456  
Westin Los Angeles Airport
  Los Angeles, CA     740  
Westin South Coast Plaza
  Costa Mesa, CA     390  
             
W   Location   # of Rooms
W New York
  New York, NY     688  
W Seattle
  Seattle, WA     426  
             
St. Regis   Location   # of Rooms
St. Regis Houston
  Houston, TX     232  
             
Other   Location   # of Rooms
Capitol Hill Suites
  Washington D.C.     152  
             
International
Sheraton   Location   # of Rooms
*Sheraton Skyline Hotel & CC
  London, U.K.     350  
Sheraton Warsaw Hotel & Towers
  Warsaw, Poland     350  
*Sheraton Roma Hotel & CC
  Rome, Italy     634  
Sheraton Santiago Hotel & CC
  Santiago, Chile     379  
*Sheraton Fiji Resort
  Nadi, Fiji     281  
             
Westin   Location   # of Rooms
*Westin Palace Madrid
  Madrid, Spain     468  
*Westin Palace Milan
  Milan, Italy     228  
*Westin Europa & Regina
  Venice, Italy     185  
*Westin Royal Denarau Resort
  Nadi, Fiji     273  
             
Luxury Collection   Location   # of Rooms
San Cristobal Tower
  Santiago, Chile     139  
 
*   Indicates one of the seven hotels that was deferred as a result of certain notice periods and consents that have not yet lapsed or been received.
Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with approximately 850 properties in more than 95 countries and 145,000 employees

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at its owned and managed properties. Starwood(R) Hotels is a fully integrated owner, operator and franchisor of hotels and resorts with the following internationally renowned brands: St. Regis(R), The Luxury Collection(R), Sheraton(R), Westin(R), Four Points(R) by Sheraton, W(R), Le Meridien(R) and the recently announced Aloft(SM). Starwood Hotels also owns Starwood Vacation Ownership, Inc., one of the premier developers and operators of high quality vacation interval ownership resorts. For more information, please visit www.starwoodhotels.com.
**Please contact Starwood’s new, toll-free media hotline at (866) 4-STAR-PR (866-478-2777) for photography or additional information.**
(Note: This press release contains forward-looking statements within the meaning of federal securities regulations, including any statements as to whether or when the transaction with Host is expected to be consummated. 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.)

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