Starwood Hotels sparks speculation on potential sale

Starwood Hotels & Resorts Worldwide, one of the world’s biggest hotel groups, has revealed it has instructed advisors to explore 'strategic alternatives', sparking speculation about a possible sale.

Connecticut-based Starwood Hotels manages a total of 1,236 hotels worldwide and owns 36 hotels with a total of 13,500 rooms. A dozen of the owned hotel assets are located in Continental Europe or in the UK.

Starwood Hotels controls the St. Regis, Westin, Sheraton and W Hotels brands. The company's board announced it has decided to 'explore a full range of strategic and financial alternatives to increase shareholder value'.

Investment bank Lazard has been hired to assist in the review process.

'No option is off the table,' Starwood's chairman Bruce Duncan said in a statement. A potential sale of the company, a disposal of the company's properties or a possible takeover of a rival company are being considered.

He added: 'Our board has always been focused on maximising long-term shareholder value, and this is a time of enormous opport unity and change in our industry. Accordingly, we will thoroughly explore the full range of strategic and financial alternatives available to Starwood to capitalise on our industry-leading global platform and best-in-class premium brands. No option is off the table, and we will take the time we need to thoroughly evaluate our opportunities and achieve the best result for our shareholders, business partners, and associates.'

The company has indicated it will not make any further public comment regarding the review until it has been completed.

The review - which comes only two months after the resignation of CEO Frits van Paasschen - was announced during a presentation of the company's first quarter results which showed a slowing business with earnings per share dropping by 18% to $0.59 at end March 2015, from $0.72 in the first quarter of 2014. Revenues fell 3% over the same period.