Starwood Hotels Selling Aloft Tucson University to Lightstone Value Plus Real Estate Investment Trust II
Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) today announced that it has completed the sale of Aloft Tucson University to Lightstone Value Plus Real Estate Investment Trust II, Inc. ("LVPRII"), a public, non-traded REIT sponsored by The Lightstone Group ("Lightstone"), a privately held real estate company, for $19 million. As part of the agreement, the hotel will be managed under a long-term license agreement by Island Hospitality Management and continue to fly the Aloft brand flag.
continue to seek the right owners and partners for our remaining owned real estate assets to create value for our shareholders," said 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 from investors around the globe."
Turner continued: "We are proud of the conversion-friendly strategy we've created for the Aloft brand.The Aloft Tucson University showcases the success of our conversion approach for older hotels with the appropriate capital investment, and its redevelopment allowed us to fine tune our approach to benefit future projects. We are pleased to broaden our relationship with both Lightstone and Island Hospitality Management, and look forward to collaborating with them on the future success of this property."
"This is a premium-branded hotel in a strategic location poised for growth," said David Lichtenstein,Chairman and CEO of The Lightstone Group. "Adjacent to the University of Arizona campus, with a student population of approximately 40,000, and sports complexes, the hotel is also in close proximity to the University of Arizona Medical Center, downtown Tucson, and numerous corporate offices, and has good accessibility to the Tucson International Airport and Interstate 10. We believe this acquisition is representative of Lightstone's ability to identify attractive investment opportunities."
Originally built in 1972, the hotel underwent a complete redevelopment prior to its re-opening in April2013 as Aloft Tucson University. Located at 1900 East Speedway, hotel amenities include an outdoor Splash pool, the brand's signature W XYZ® bar, a 24-hour fitness center and 1,723 square feet of flexible meeting space, ideal for both business meetings and social gatherings.
About LVPR II
LVPR II is a public, non-traded REIT sponsored by The Lightstone Group that offers shareholders anopportunity to invest in a diversified portfolio of real estate. For more information, visit www.lightstonecapitalmarkets.com.
About The Lightstone Group
The Lightstone Group, founded in 1988, is a privately held real estate company with one of the mostdiversified real estate portfolios in the United States. Today, Lightstone's portfolio consists of more than 11,000 multifamily units, 8.1 million square feet of office, hotel, retail and industrial assets, and 12,000 fully-improved residential lots throughout the United States. Lightstone and its affiliates have been one of the largest developers of outlet shopping centers in the United States over the last 10 years. The company has owned, managed and developed 25 outlet centers totaling more than 8 million square feet. Lightstone is one of the most active residential and hospitality developers in New York City with more than $1 billion of projects under development in Manhattan, Brooklyn and Queens.
Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with more than 1,300 properties in some 100 countries and approximately 188,000 employees at its owned and managed properties. Starwood is a fully integrated owner, operator and franchisor of hotels, resorts and residences under the renowned brands: St. Regis®, The Luxury Collection®, W®, Westin®, Le Méridien®, Sheraton®,Tribute Portfolio™, Four Points® by Sheraton, Aloft®, and Element®, along with an expanded partnership withDesign Hotels™. The company also boasts one of the industry’s leading loyalty programs, Starwood Preferred Guest (SPG®). Visit www.starwoodhotels.com for more information and stay connected @starwoodbuzz on Twitterand Instagram and facebook.com/Starwood.
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