Starwood Strikes Deal For Westin Trust Pays $1.57 Billion For Upscale Hotel Chain

Starwood Lodging Trust, the nation’s largest hotel real estate investment trust, and its hotel management company announced on Tuesday the purchase of Westin Hotels & Resorts for $1.57 billion in cash, securities and assumed debt.

The acquisition creates a company with 219 hotels worldwide and in 38 states. Combined revenues are expected to top $4 billion, Starwood said.

Starwood Lodging Trust and Starwood Lodging Corp., both based in Phoenix, are buying Westin from a group of investors including Starwood Capital Group, Goldman, Sachs & Co., and California hotel company Edward Thomas Cos.

Starwood Capital is a separate entity from Starwood Lodging, but both are headed by Barry Sternlicht, who will become chairman of the new Westin. Westin was offered for sale earlier this year, with Starwood considered a leading contender, but its owners also considered taking the chain public through a stock offering.

As part of the deal, Starwood will acquire interests in 13 hotels owned by Westin, including Westin Hotels in Seattle, Cincinnati and Indianapolis.