HK Investment Company Buys W San Francisco for $90M

Starwood Hotels & Resorts Worldwide has signed an agreement to sell the W San Francisco for $90 million to Keck Seng Investments Limited, a hotel investment and property development company based in Hong Kong. The buyer, which currently owns three other Starwood hotels, will continue to manage the property under the W name. The sale of the W San Francisco represents one of a few select asset dispositions that Starwood is pursuing to further reduce its debt levels. Starwood says that it expects to continue growing the W brand from 25 hotels today to 60 hotels by 2011.

The price reflects continuing weakness in the hospitality sector and tightness in the credit markets, said Mark McDermott, senior managing director of San Francisco hotel advisory firm PKF Capital in a San Francisco Chronicle article. "We've finally basically bridged the buyer-seller gap, with sellers' expectations falling to levels where buyers are confident enough" to pursue deals, McDermott said. "We would expect this type of activity to represent, hopefully, the start of folks dipping their toes back into the water."

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