Starwood Capital Group LLC, the real estate investment firm led by Barry Sternlicht, agreed to buy the InTown Suites extended-stay hotel chain from a Kimco Realty Corp. (KIM) venture for $735 million, including debt.
The deal with the Starwood Distressed Opportunity Fund IX should be completed in the first half of next year, New Hyde Park, New York-based Kimco said in a statement today. The sale price includes about $617 million of existing debt.
Kimco, the largest U.S. owner of community shopping centers, has been selling non-retail investments to focus on its main business. The company owns a 75 percent interest in InTown Hospitality Investors LP, the venture that owns InTown Suites. The portfolio is composed of 138 extended-stay properties predominantly in the southern U.S., with concentrations in Texas, Georgia and Florida.
Sternlicht was chairman and CEO of Starwood Hotels & Resorts Worldwide Inc. (HOT), a company he founded, from 1995 to 2005. In 1991, he created Starwood Capital, a Greenwich, Connecticut- based firm whose investments have included the Carlyle Hotel in New York and the Paramount Bay residential tower in Miami, according to the company’s website.
To contact the reporter on this story: Nadja Brandt in Los Angeles at email@example.com
To contact the editor responsible for this story: Kara Wetzel at firstname.lastname@example.org