Starwood has put its three key Fiji assets on Denarau Island up for sale.
The properties – Sheraton Fiji Resort, The Westin Denarau Island Resort and Spa and Denarau Golf & Racquet Club – have been listed for sale by CBRE Hotels on behalf of Starwood Hotels and Resorts Worldwide.
A campaign kicking off this week (Mar 18) is expected to generate strong buyer interest in the properties.
The assets will be sold with the benefit of a long-term management contract with Starwood, which has owned and managed the properties for many years.
“The sale of our Fiji assets will continue to advance Starwood’s commitment to an asset-light strategy, and we expect the properties to attract strong, global investor interest,” said Simon Turner, President of Global Development for Starwood.
“We will continue to have a long-term presence in Fiji through our ongoing management of these properties and, as always, will seek out the right owners and partners to create value for our shareholders.”
CBRE Hotels’ Senior Directors Rob Cross and Wayne Bunz have been appointed to handle the sale by way of an International Expression of Interest campaign.
“These trophy assets provide an outstanding opportunity for an investor to purchase an impressive and well-performing collection of hotel assets in the Pacific region,” said Cross.
“The assets represent one of the first major resort sales in Fiji in over a decade and are expected to attract significant buyer interest.”
The assets boast a prime beachfront location on the north-western tip of Denarau Island – Fiji’s premier tourism and leisure destination. Denarau is the most established and high-profile tourism destination in Fiji and benefits greatly from its close proximity to Nadi International Airport and the Denarau Island Convention Centre, the largest conference facility in the country.
“The Fijian Tourism Industry contributes about 34% towards our GDP,” said the Hon. Attorney-General and Minister for Finance, Aiyaz Sayed-Khaiyum.
“Over the last couple of years, we’ve seen a substantial growth in tourism, in part due to the appeal of strong global brands such as Starwood’s brands. We are pleased Starwood is committed to being in the market for the long-term and will continue to contribute to the Fijian economy.”
The five-star Sheraton Fiji Resort opened in 1987 and has been upgraded in recent years. Situated on 10.1ha of land, the 300-room resort is built around a substantial lagoon pool complex and includes a selection of dining outlets and bars, including one of Denarau’s most popular restaurants – Flying Fish. The property also features seven retail outlets, six swimming pools, a fitness centre, kids club, business centre, and wedding chapel.
Right next door is The Westin Denarau Island Resort and Spa, also situated on 10.1 hectares of land. Opened in 1976, the 276-room resort features many amenities including The Kitchen @ Westin, a popular wine bar and grill, as well as six tennis courts, four swimming pools, a day spa, fitness centre, bowling green and six retail outlets.
The Denarau Golf and Racquet Club encompasses over 110 hectares and includes an 18-hole championship golf course as well as a substantial clubhouse facility and a tennis centre. An abundance of surplus land within the confines of the Club property could potentially yield ten additional development sites totaling approximately 12.6ha. This could suit resort or residential development, subject to the relevant approvals.
In the past three years, Starwood has completed approximately USD$1.5 billion of hotel asset sales including the recent record-setting sale of the Sheraton on the Park Hotel to Sunshine Insurance Group Corporation. Other recent sales include The St. Regis Bal Harbour, The Westin San Francisco Airport, Aloft San Francisco Airport and the Philadelphia Airport Complex.
Expressions of Interest in all three properties close at 4pm on 23rd April 2015.