Starwood Capital is in talks to sell part of the Concorde Groupe to the European hotel company, JJW Hotels and Resorts, according to the International Herald Tribune.
Starwood told the newspaper it was in the “very early stages” of negotiations to sell a selection of hotels from the group, which controls 33 luxury hotels around the world.
The sale, according to the report, would include Paris hotels the Concorde La Fayette and Lutetia in Paris, the Hôtel Martinez in Cannes and the Palais de la Méditerranée in Nice. It would not, however, include the landmark Paris hotels, the Hôtel de Crillon and the Hôtel du Louvre.
A Starwood spokeswoman was unavailable for comment by press time.
JJW is a unit of MBI International, run by Sheik Mohamed Bin Issa Al Jaber, a Saudi businessman. It owns about 60 hotels and resorts around Europe, including Hôtel de Vigny in Paris and the Grand Hotel Vienna.
If a deal is reached, the Saudi company is expected to retain the existing management of the hotels. Saudi media has reported the deal to be worth around $2 billion.
Last week, Starwood received a $400 million commitment to its latest global hotel fund from the $233 billion California Public Employees’ Retirement System. CalPERS said at its recent investment committee meeting it would invest $400 million with Starwood Capital Global Hospitality II, which is believed to be targeting $3 billion. The fund is targeting net returns of at least 20 percent.