Marriott International, now merged with Starwood Hotels & Resorts Worldwide, has sold The St. Regis San Francisco hotel to Qatar Investment Authority.
As part of the $175 million deal, the hotel will remain under Marriott management under a long-term contract.
As Marriott and Starwood prepared to combine their respective groups, Starwood sold a number of its properties to outside investors, taking an light asset strategy into the merger.
Under new ownership
The 260-room hotel is located within the artistic SoMA area of the city, with the Museum of African Diaspora housed within its property and has the San Francisco Museum of Modern Art next-door. Additionally, a number of galleries call its neighborhood home.
Guests have access to 24-hour concierge and room service, as well as butlers and touches such as nightly turndown.
Now under new ownership, the hotel’s guest rooms and public spaces, which include 15,000 square feet of meeting areas, will be renovated.
“We have a strong and successful partnership with QIA and we are thrilled that this iconic hotel will expand QIA’s collection of Marriott-branded hotels to the U.S.,” said Arne Sorenson, Marriott International’s president/CEO, in a brand statement. “This hotel will remain a flagship for the St. Regis brand, a jewel in the Marriott International portfolio and one of San Francisco’s most desired places to stay.”
Qatar Investment Authority is the sovereign wealth fund of the state of Qatar. Its subsidiary Qatar Holdings owns Harrods.
The fund is also active in hospitality. French hospitality group AccorHotels has finalized its acquisition of FRHI Hotels & Resorts, owner of the Fairmont, Raffles and Swissôtel brands, for $2.7 billion.
On July 12, shareholders at the general shareholders meeting approved a transaction involving Qatar Investment Authority (QIA) and Saudi Arabia’s Kingdom Holding Company (KHC) resulting in Accor’s acquisition of FRHI. AccorHotels’ global platform and digital expertise and FRHI’s expertise in operating and marketing luxury hotels suggests mutual benefit.