The portfolio consists of 382 rooms in four high-end hotels, amarina, a golf course and a 51% interest in 6,000 undeveloped acresin Costa Smeralda, a luxury resort destination on the northeasterncoast of the Italian island of Sardinia. Colony Capital isacquiring the portfolio on behalf of institutional investors. Thesale is expected to close during the second quarter of thisyear.

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The portfolio has been on the market for two years now andseveral would-be buyers have reportedly tried to acquire theportfolio and failed. Jonathan Grunzweig, a principal with ColonyCapital tells GlobeSt.com his company's approach was to partnerwith Starwood, which maintains a non-controlling interest in theundeveloped land and will continue to manage the hotelproperties.

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Included in the transaction are Hotel Cala di Volpe, HotelPitrizza, Hotel Romazzino, and Cervo Hotel & Conference Center;the Porto Cervo Marina and Shipyard; the Pevero Golf Club; theundeveloped oceanfront land, and; additional office, retail andstorage facilities. The hotels have been featured in the pages ofVogue, Bazaar and Town and Country. The golf course has beenrecognized as one of the top 100 courses in the world. The marinais host to the Yacht Club Costa Smeralda.

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Starwood Chairman and CEO Barry Sternlicht says the transactionnot only harvests some of the value of a portion of the company'sEuropean asset base, but also retains the potential for significantupside. "We believe Colony's real estate expertise can maximize thepotential of the land assets materially increasing our proceedsover time," says Sternlicht.

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The sale agreement comes less than a month after Starwoodannounced it had signed an agreement to sell the Hotel Principe diSavoia to the London-based Dorchester Group LTD for approximately$300 million (275 million Euros).

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