"I think that [CEO] Adam Aron is really reaching some conclusions," Cramer told TheStreet TV. "He recognizes that there's a lot of value in Starwood. He could go the Marriott (MAR) way, which is a spin-off of time-share business Marriott Vacations Worldwide (VAC). He could also put the company up for sale."
Starwood's current stock price of about $84.87 is roughly 27 times higher than per-share earnings last year, compared with Marriott International's multiple of 29, according to data compiled by Bloomberg.
Cramer's portfolio also exited its position in athletic-clothing company Lululemon Athletica (LULU). "The problem with Lululemon is that I think that it got loved again," Cramer said.
"It's like Panera Bread (PNRA)," he said. "When we saw Panera begin to get too loved and Lululemon began to get too loved, we got nervous. These are companies that have a checkered history of operations. You want to get in them when people don't like them and get out of them when people love them."
With shares currently priced at about $61.27, Lululemon trades at about 33 times its per-share earnings last year, a discount to Under Armour's multiple of 82, but slightly ahead of Nike's price-to-earnings ratio of 29, according to Bloomberg data.
In addition, the trust sold its position in Panera Bread this week, as the company's plan to add more technological advancements to stores, known as Panera 2.0, is taking longer than many investors had hoped.
"We are more comfortable with companies that have the ability to capture the tailwinds of an improving international economic and currency environment, and are less inclined to stick with those that are leveraged to a weakening retail sales picture," Cramer, the trust's portfolio manager, and its research director, Jack Mohr, wrote on the decision behind selling the shares of Panera.
The trust also picked up EOG Resources (EOG) shares. "EOG is a really good operator," Cramer said. "It's not just a regular oil company. It's the one that has the best balance sheet, the best prospects."