Starwood Hotels & Resorts Worldwide has signed a binding agreement to sell a portfolio of 14 non-strategic domestic hotels for approximately $312 million, subject to certain adjustments.

In addition, Starwood is negotiating definitive agreements with another partner for the sale of the four additional domestic hotels discussed in the first quarter 2003 earnings release and anticipates entering into agreements in the near future.

Proceeds from these and other previously announced asset sales are expected to be approximately $1.1bn, which will be used to repay debt and for general corporate purposes.

The sale of the 14 hotels is to a group of investors including Olympus Real Estate Partners, Rockwood Capital, Prudential Real Estate Investors and HEI Hospitality. The sale, subject to standard closing conditions, is expected to close by the third quarter.

The portfolio of 14 hotels includes 4,171 rooms and is comprised of eight Sheratons, two Westins, one Marriott, two Hiltons and one independent property, located across 11 states.

The Starwood-branded hotels in the portfolio will remain under their current flags with an additional hotel planned for conversion to a Starwood flag.

HEI will assume management of the majority of these properties and as part of this transaction, it expects to introduce future franchising opportunities for Starwood’s brands. The portfolio of four hotels includes 1,392 rooms and is comprised of two Sheratons and two Marriotts located in four states. Details: www.starwood.com