Starwood Hotels & Resorts said
on Wednesday that its board will “explore a full range of strategic and
financial alternatives to increase shareholder value.”
The company has retained financial
advisory firm Lazard to assist in the process.
“Our board has always been focused
on maximizing long-term shareholder value, and this is a time of enormous
opportunity and change in our industry,” Starwood Chairman Bruce Duncan said in a statement. “Accordingly, we will thoroughly explore the
full range of strategic and financial alternatives available to Starwood to
capitalize on our industry-leading global platform and best-in-class premium
brands. No option is off the table, and we will take the time we need to
thoroughly evaluate our opportunities and achieve the best result for our shareholders,
business
partners, and associates.”
In a note to clients, UBS analyst Robin Farley wrote, “We believe Marriott, Hilton and
Wyndham are potential buyers that investors will focus on, as well as the
potential for combination with IHG. Starwood’s owned hotel properties could make sense with
Hilton’s potential to spin owned assets into a REIT (real estate investment trust).”
Starwood’s brands are Sheraton,
Four Points by Sheraton, Westin, Element, Aloft, St. Regis, W, Luxury
Collection, Le Meridien and Tribute Portfolio.