Starwood Aligns With Design Hotels
Starwood Hotels & Resorts has signed an agreement to acquire 49.8% of the shares of Design Hotels AG from Arabella Hospitality SE, one of Starwood’s longtime partners in Germany.
Berlin-based Design Hotels boasts a portfolio of over 200 member hotels in 40 countries. Design Hotels’ hand-picked collection of hotels are independently owned, but united by a passion for thought-provoking design, aesthetic and service-driven experiences.
The opportunity to acquire a stake in Design Hotels came through Starwood’s relationship with Arabella Hospitality SE that recently re-focused its hotel strategy mainly on ownership and asset management and as a result chose to divest its shares in Design Hotels. Starwood continues to manage or franchise 20 of Arabella Hospitality SE’s hotels in Europe.
“This is an investment presented to us by a longtime partner,” said Frits van Paasschen, president and CEO of Starwood Hotels & Resorts. “With our own passion for design and innovation, we have long admired Design Hotels, its founder, CEO Claus Sendlinger, and his executive team, who have worked closely with some of the world’s most exciting independent hotel owners to curate a unique collection of hotels around the globe. As a shareholder, we are delighted to have a seat at the table of this dynamic company.”
According to van Paasschen and Sendlinger, Starwood will not be involved in the day-to-day operations of Design Hotels, nor will Design Hotels participate in any of Starwood’s centralized delivery systems including reservations and Starwood Preferred Guest.
The transaction, which is subject to anti-trust approval in Germany, is expected to close in the first quarter of 2012.
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