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Starwood Continues to Shed Assets, Closes Sale of 2 Hotels

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Starwood Hotels & Resorts Worldwide, Inc. announced that it has completed the sale of The St. Regis Florence and The Westin Excelsior Florence to Nozul Hotels & Resorts for 190 million Euros (approximately $213 million USD).

Starwood will continue to oversee the operations of the hotels under the St. Regis and Westin brands in compliance with new long-term management agreements.

 Nozul Hotels & Resorts is the owner of The Gritti Palace, Venice and W Doha Hotel, and a wholly owned subsidiary of “Jaidah Holdings” Asset dispositions remain a vital part of Starwood’s refranchising strategy. So far this year Starwood has disposed of almost $500 million of assets, including the latest sale of The St. Regis Florence and The Westin Excelsior Florence, the sale of Hotel Imperial, and the transfer of five properties as part of  Vistana Signature Experiences’ separation from Starwood.

Starwood’s vacation ownership business was acquired by  Interval Leisure Group, Inc.  in May this year as a condition for Starwood’s pending merger with Marriott International, Inc. (MAR - Free Report) . The vacation ownership business was renamed to Vistana Signature Experiences. The Starwood-Marriot merger is due to close soon.

 A higher concentration of management and franchise fees reduces earnings volatility and provides a more stable growth profile. Currently, the company has a number of assets for sale in North America, Europe and Asia.

Starwood currently has a Zacks Rank #1 (Strong Buy).

Investors interested in the same space may consider a stocks like Intrawest Resorts Holdings, Inc. (SNOW - Free Report) and China Belmond Ltd. , both sporting a Zacks Rank #1 (Strong Buy).

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