DOW JONES NEWSWIRES
Starwood Hotels & Resorts Worldwide Inc. (HOT) said it plans
to sell its Bliss spa and product business to Steiner Leisure Ltd.
(STNR) for $100 million as the company looks to focus on operating
hotels.
As part of the deal, Bliss and Remede spas and amenities will
remain exclusive to Starwood in the hotel category at W Hotels and
St. Regis Hotels, respectively.
The sale is on top of the planned sale of $125 million in other
"non-core assets" that Starwood said Monday are due to be closed on
this quarter.
Bliss spa products are found in 15 locations. Starwood acquired
the spa business at the start of 2004 from LVMH Moet Hennessy Louis
Vuitton (LVMUY, MC.FR) for $25 million.
The hotel owner and manager has been reporting weaker results,
like many in the industry. But third-quarter earnings for the major
players, including Starwood, were largely above expectations,
though the results didn't give Wall Street any more clarity on the
speed, scope or depth of a nascent recovery in the
recession-battered lodging industry. For its part, Starwood said
revenue per available room could fall another 5% next year on top
of 2009's double-digit percentage decline.
Starwood, which has 982 properties, has also been culling its
portfolio some. It sold two hotels in the third quarter for about
$96 million.
For its part, Steiner reported weaker results in the third
quarter. The company operates spas and salons on 126 cruise ships
and 51 resort spas. Its stock fell 1.7% Monday to $36.33 amid a
broad market rally. Shares are up 23% this year.
Starwood was down 9 cents to $28.97 as the company said earlier
in the day that its annual dividend would be slashed to 20 cents a
share from 90 cents amid the company's profit slump in 2009.
-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354;
kevin.kingsbury@dowjones.com