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. 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., 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.