Starwood Hotels & Resorts Worldwide has completed the sale of Aloft and Element Lexington to Rockwood Capital for USD36m.
As part of the agreement, the dual-hotel development in Lexington, Massachusetts will be managed under long-term license agreements by Paramount Hotel Group and continue to fly the Aloft and Element flags.
“This sale is consistent with Starwood’s asset-light strategy as we continue to seek opportunities to sell owned real estate at the right time to the right owners,” says Simon Turner, president of global development for Starwood. “Starwood completed over USD500m of hotel asset sales in 2012, and investor interest in the company’s other owned assets has increased markedly as hotel industry fundamentals and capital markets have continued to improve.”
“We are thrilled to be expanding our relationship with Starwood. We view these properties as an excellent fit with our strategy to acquire strong income-producing properties in one of our key target markets on the east coast,” says Tony Larino, managing director and head of lodging at Rockwood Capital.
Built by Starwood and opened in 2008, Aloft Lexington and Element Lexington share the same parcel of land at 727 Marrett Road, close to the 128 Mass Turnpike. Home to numerous technology businesses, Lexington offers a combination of historical sites, farm stands and greenhouses, as well as access to Boston's business community and leisure attractions.