The hotel features 45 luxury suites, 50,000 sf of meeting space, 39,000 sf of retail space, a 4,600-sf health club and spa and four food and beverage outlets. Westin, an affiliate of Starwood, will continue to manage the property for Strategic Hotels & Resorts.

Strategic Hotels & Resorts is a REIT that owns and asset manages 18 high-end hotels and resorts. Chief executive Laurence Geller says San Francisco has lagged the broader market recovery and is poised for significant and sustainable growth. In addition, CFO James Mead tells GlobeSt.com that significant value can be added through the conversion and realignment of the retailing space, guestrooms and public areas to capitalize on the hotel's scale, location and existing facilities.

The sale is expected to close during the second quarter 2006. The company forecasts that the property will contribute between $19 million and $21 million of EBITDA in the last seven months of 2006 and between $32 million and $34 million in the first 12 months of ownership.

The hotel and much of the retail space fronts Union Square, a tourist Mecca that is home to the city's high-end retail shops. "There is a belief that we can make more money out of the same retail space," Mead says. With regard to the hotel's common areas and guestrooms, Meads says the general plan is to "add to some of the recent renovations and refine and tune the marketing strategy and the pricing potential for the asset."