Starwood Preferred Guest - Venice's Gritti Palace: On the Block?

(disclaimer: i did a search and while i found existing threads on the Gritti, i couldn't find one about HOT trying to sell it.)

from today's Wall Street Journal:

"For two years, Starwood Hotels & Resorts Worldwide Inc. has been trying to sell several European trophies such as Venice's Gritti Palace. Spokesman Dan Gibson describes the ideal buyer as one who says, "I've gotta have it for my kids.""

i do have to say that in addition to its great customer service, starwood's wonderful international properties are a main reason why i am so loyal to the company. i wasn't thrilled when the principe was sold and i would be sad to see the gritti go.

but, i guess business is business.

http://online.wsj.com/article/0,,SB107706340
089632085,00.html?mod=COMPANY (http://online.wsj.com/article/0,,SB107706340089632085,00.html?mod=COMPANY)

p.s.-edited to add the following excerpt from the article:

"Some hotel professionals say a Motel 6 might provide better financial returns. Still, trophy hotels are by their nature irreplaceable and tend to hold their value, says Michael Mahoney, a Los Angeles consultant with PricewaterhouseCoopers, making them attractive investments for passing along wealth. The bragging rights can be priceless."

[This message has been edited by fly co to see the yanks (edited Feb 18, 2004).]

I saw this same article, and it scares me! While I haven't stayed at the Gritti (I chose the E&R nearby), it's access to places like the Gritti Palace that make SPG so nice. If we lose a lot of the Luxury Collection-type places, that will really hurt.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by wizzy:
If we lose a lot of the Luxury Collection-type places, that will really hurt.</font>

How's this for starters: the Orchid is already gone, the Lanai hotels are going for sure, and Kapalua Bay may be going as well

[This message has been edited by ajnaro (edited Feb 21, 2004).]

I'll be bummed. Stayed there last year and vowed to go back.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by beachfan:
I'll be bummed. Stayed there last year and vowed to go back.</font>

Ditto...except for the pricey drinks...ouch. Beautiful hotel.

I always thought that Starwood was trying to sell the real estate and maintain long-term management agreements on those assets that were sold. For example, when Starwood sold the assets on the Costa Smeralda, they maintained management contracts and then pocketed the $$$ from the appreciation of the real estate.

Also, Starwood doesn't own the Lana'i hotels - from what I heard they were just marketing agreements. The press reports I read stated that The Orchid was a managed asset and Fairmont was willing to pay any price for entry into the market (Starwood will be back with the Sheraton Keahou Bay in late 2004).

If Starwood can sell the real estate on some of these trophies that have extremely high costs to operate, pocket the cash and then purchase the assets of another organization (can you say Le Meridien?) or contribute to some other assets under development (like the new Westin at the ne Boston Convention Center), I say more power to 'em!

i agree with ORDPLATAA as long as the management contracts stay in place.

but, what about the principe in milan? that property is, unfortunately, totally gone.