Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) today announced that it has completed the sale of Aloft and Element Lexington to Rockwood Capital for $36 million. As part of the agreement, the dual-hotel development in Lexington, Massachusetts will be managed under long-term license agreements by Paramount Hotel Group and continue to fly the Aloft and Element flags.
“This sale is consistent with Starwood’s asset-light strategy as we continue to seek opportunities to sell owned real estate at the right time to the right owners,” said Simon Turner, President of Global Development for Starwood. “Starwood completed over $500 million of hotel asset sales in 2012, and investor interest in the company’s other owned assets has increased markedly as hotel industry fundamentals and capital markets have continued to improve.”
“We are thrilled to be expanding our relationship with Starwood. We view these properties as an excellent fit with our strategy to acquire strong income-producing properties in one of our key target markets on the east coast,” said Tony Larino, Managing Director and Head of Lodging at Rockwood Capital.
Built by Starwood and opened in 2008, Aloft Lexington and Element Lexington share the same parcel of land at 727 Marrett Road, close to the 128 Mass Turnpike. Home to numerous technology businesses, Lexington offers a charming combination of historical sites, farm stands and greenhouses, as well as convenient access to Boston's thriving business community and leisure attractions.
Aloft Lexington offers 136 guest rooms, indoor pool,
bar, fitness center and meeting space. Element Lexington features 123 guestrooms, fitness facility and meeting space. The two hotels share 297 parking spaces.
About Rockwood Capital
Rockwood Capital, LLC is a real estate investment firm that provides equity capital combined with real estate expertise for repositioning, recapitalization, development and redevelopment of retail, hotel, residential, office and research and development space in key markets throughout the United States. Since 1990, Rockwood and its principals have invested on behalf of their clients approximately $13.4 billion of real estate through eight value-add vehicles and three separate accounts. Today, Rockwood is an 82 person real estate investment firm with offices in White Plains, NY, San Francisco, CA, and Los Angeles, CA and manages a portfolio of approximately $2.6 billion of net equity value in approximately $6.6 billion of gross real estate value. Rockwood’s investors include public and private pension funds, endowments, foundations, insurance companies, fund of funds, high net worth individuals and family offices.