In conjunction with the impending acquisition of Stamford-based Starwood Hotels & Resorts Worldwide by Marriott International Inc. Starwood has announced the successful sale of its timeshare subsidiary Vistana Signature Experiences Inc. to Interval Leisure Group Inc. (ILG) of Miami.
As part of the deal, originally announced in October 2015, ILG paid approximately $123 million in cash to Starwood, whose shareholders will receive 72.4 million ILG shares valued at $14.24 per share based on the closing price on May 11, according to ILG.
“Today is a significant milestone for ILG and Vistana,” said Craig M. Nash, chairman, president, and CEO of ILG. “With a portfolio that includes the worldwide exclusive rights in vacation ownership to the Sheraton, Westin, and Hyatt brands, as well as a strong financial profile, we are positioned to continue to execute on our strategic vision.”
In connection with the acquisition, Vistana has entered into an exclusive, 80-year global license agreement with Starwood for the use of the Westin and Sheraton brands in vacation ownership. In addition, ILG has the non-exclusive license for the existing St. Regis and The Luxury Collection® vacation ownership properties.
Eleven brands fall under the Starwood umbrella including Sheraton, Westin, St. Regis Four points and W Hotels.
ILG will absorb approximately 5,000 Vistana employees and now has more than 10,000 employees managing over 250 resorts.
“With the completion of this transaction, we”™ve formed one of the industry”™s largest and most respected providers of world-class vacation experiences,” said Thomas B. Mangas, Starwood”™s chief executive officer. “This transaction also represents another important step toward the closing of our merger with Marriott, which remains on track for mid-year.”
