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Marriott Continues to Slim Down Starwood Properties

Marriott is continuing its “asset-light” diet with the sale of yet another Starwood property obtained during the company acquisition.

Visitors to Maui will see a change in a popular resort soon. Marriott International recently sold The Westin Maui Resort & Spa, Ka’anapali to Trinity Investments and Oaktree Capital Management. The resort sold for $317 million. It’s a move to keep Marriott on track with its management model and goal to gain about $250 million in annual cost savings.

“We are proud to announce the sale of this iconic resort property and to expand our portfolio with our strong global partners, Trinity and Oaktree,” Leeny Oberg, chief financial officer of Marriott International, said in a release. “The sale demonstrates the strength of the Westin brand and reaffirms our commitment to our asset-light strategy as we continue our merger integration.”

The resort’s buyers plan to make updates to the property, including a renovation of one of the towers and updates to the public areas and restaurants.

This is the second resort Marriott has sold since the company acquired Starwood. The first was the sale of the St. Regis San Francisco to Qatar Investment Authority at the end of last year. And Marriott isn’t planning on stopping any time soon; the company will sell off as many Starwood properties as it needs to reach the desired amount on savings by the end of 2017.

“We have a great track record of asset recycling,” Oberg told Skift. “We still have 13 hotels as a part of Starwood and we’re in the process of looking at the strategy for each and every one of those hotels. This is actually a continuation of Marriott’s asset-light strategy, which we’ve had for a number of years now.”

[Photo: Shutterstock]

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