Starwood will continue to manage the hotels under a long-term contract andwill retain a 49% stake in the undeveloped land.Costa Smeralda, or the Emerald Coast, is located on the northern coast ofthe Italian island of Sardinia.
Under the agreement, Colony Capital is buying from Starwood's CIGA portfolioof hotels and resorts: Hotel Cala di Volpe, Hotel Pitrizza, Hotel Romazzino,and Cervo Hotel & Conference Center; the Porto Cervo Marina and Shipyard;the Pevero Golf Club; a 51% stake in nearly 6,000 acres ofundeveloped oceanfront land; and some ancillary facilities. The hotels total382 rooms.
The company also plans to close its sale of the Hotel Principe di Savoia tothe London-based Dorchester Group LTD for €275 million or aboutUS$320 million within the next few weeks, as well as its sale of a 14-hotelportfolio in North America during the third quarter. An additionalfour-hotel portfolio sale in North America is expected in 2003.
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