Starwood Capital Group and Hersha Hospitality Management (HHM) are to go into partnership in a move aimed at providing the latter with the finance to expand its operations in the continental US.

Starwood Capital is a private investment firm focused on real estate, while the privately held HHM is a third-party hotel management company. Under the terms of the agreement, Starwood Capital has purchased a 49.9 per cent stake in HHM for an undisclosed sum. The new partnership will be looking to invest in select-service and full-service hotel management opportunities across the country. HHM currently operates more than 70 hotels in metropolitan regions in Boston, Connecticut, New York, New Jersey, Philadelphia and Washington, DC. The company provides turnkey management services for properties trading under a range of brand names, including Marriott, Hilton, Hyatt, Starwood and InterContinental Hotels Group.

Barry Sternlicht, chair and CEO of Starwood Capital, is the founder of Starwood Hotels & Resorts, where he held the same positions for nearly 10 years.