Stamford-based Starwood Hotels & Resorts Worldwide Inc. said in a press release it is spinning off its 22 timeshare resorts into a separate and publicly traded company.
That business, Starwood Vacation Ownership, had revenue of about $640 million last year. It has sold more than $6 billion worth of timeshares to more than 220,000 buyers over the past 30 years, Starwood reported.
Starwood on Tuesday said the new company will establish long-term license agreements with Starwood to maintain affiliation with the Westin and Sheraton brands.
Starwood, in the statement announcing the move, said it will transfer additional assets at Westin Los Cabos, Westin Cancun, Westin Puerto Vallarta, Sheraton Kauai and Sheraton Steamboat to the new company for timeshare development.
The company, which has yet to be named officially, will maintain its headquarters in Orlando, Fla. Matthew Avril, 54, who retired as president of Starwood’s hotel group in 2012, will become CEO. The spinoff is expected to be completed by year’s end.
