NEW YORK— London-based Dorchester Group Ltd. today continues to strategically expand it portfolio of luxury hotels, taking ownership of the Hotel Principe di Savoia in Milan, Italy, from Starwood Hotels & Resorts Worldwide, Inc. The 404-room property, which had been part of Starwood’s CIGA portfolio of hotels and resorts, was acquired for $300 million ($275 million Euros). Acting spokeswoman, Martine de Geus, director of marketing for The Dorchester, told HOTEL BUSINESS®, “We’re on a slow expansion program. I say slow and deliberate because we’re looking for properties that really fit in with the properties we currently have.” In addition to The Dorchester in London, the group has two properties in Paris, Hôtel Meurice and Hôtel Plaza Athénée, and The Beverly Hills Hotel in the United States. “We’re looking only in gateway cities. We’ve been looking in Europe and Milan has always been a prime target for us,” said De Geus, who noted Madrid, also was under serious consideration, as is New York. The Milan property will fit well in the portfolio, she added, in that it has a sense of history and tradition. “It’s a very individual hotel in it’s own right— as all of our hotels are; they really speak for themselves. I would say at this stage the ‘brands’ of the individual hotels are really stronger than group brand,” said de Geus. The hotel has a much higher room count that the traditional group hotel; however, de Geus believes the market demand is there. “Milan is on a precipice— with the new airport— of becoming an important hub in that part of Europe, so for many reasons that hotel was right for us,” she said. The city already is known for its cutting-edge fashion and design, which will be a target market for the hotel. De Geus cited the flow of sophisticated travelers and businesspersons as “more constant” than the similar market that travels to Paris, e.g., for the designer collections. “There’s just always something happening in Milan,” she said. The Hotel Principe di Savoia was one of three Starwood properties in Milan. The remaining hotels are the Diana Majestic and the Westin Palace. The property was sold unencumbered to the Dorchester Group The general manager of the property, Paulo Guarneri, is remaining with the property. Anna Gricini, who was regional sales and marketing director for Starwood, will stay on as sales and marketing director for the Dorchester Group, which also is managing the property. De Geus said the Hotel Principe di Savoia will be marketed with the rest of the portfolio as part of The Leading Hotels of the World. She acknowledged the Milan move could act as a stepping stone for the Group to gain a foothold in more European countries. “We have been looking at other properties and other hotels— things haven’t been right for us. But we will continue to look and, as and when the right property comes along, we will make a bid to purchase it. However, it will always be unencumbered because we will always want to own and manage the hotels,” she said. The sale of the Hotel Principe di Savoia advances Starwood’s corporate plan to divest $500 million of hotel assets by the end of this year. Starwood is expected to retire debt with the proceeds.
Previous ArticleCarnegie Hotel Development Breaks Ground On Residence Inn
Next Article Rim Hospitality To Manage Residence Inn – Anaheim