Strategy

Invest Opportunistically 

As market conditions and economic realities change, we adjust our investment focus across asset classes, geographies and within the capital structure to achieve superior risk-adjusted returns. Starwood Opportunity Fund 1/1A in the early 1990s focused on the domestic U.S. market and we acquired a portfolio of approximately 6,400 multifamily units. Through Starwood Mezzanine Investors in the mid-1990s, we acquired a portfolio of high yielding mezzanine investments that represented substantial discounts to relevant replacement costs. Through Starwood Hospitality Fund I and Starwood Global Opportunity Fund VII in the mid-2000s, we effected the $3.2 billion acquisition of Société du Louvre, a collection of prestige hotels, economy hotels and luxury goods companies based in Europe.
 

Leverage Expertise in Distressed Investing 

We anticipate market movements and focus on market dislocations to capitalize on undervalued opportunities. In the current real estate cycle, there is an unprecedented supply of distressed sellers. Investment opportunities, however, will be evolutionary and we will therefore invest through the cycle but always ahead of the curve. Some asset classes are correcting earlier but they may also form stabilizing patterns and recover sooner than others. This will apply city by city, country by country and asset class by asset class. Given Starwood’s deep relationships and strong market presence, we are well positioned to effectively time our investment in each of today’s distressed investment opportunities.
 

Maximize Value through Creative Solutions  

We are able to quickly identify, underwrite, structure and close complex transactions in both the public and private markets. After combining our real estate and capital markets expertise to make well-timed acquisitions, we utilize our in-house asset management team to maximize the value of our assets during our ownership period, including implementing an appropriate disposition strategy. In addition to exits such as sales to strategic buyers, we have been particularly creative in utilizing the public markets to maximize investment returns: Starwood’s early funds contributed assets to help create Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT), one of the world’s leading publicly traded hotel companies; iStar Financial, Inc. (NYSE: SFI), one of the largest publicly traded real estate finance companies; and Equity Residential Properties Trust (NYSE: EQR), a publicly traded real estate investment trust.
 

Cultivate a Strong Partner Network  

Local partners bring us unique knowledge, investment opportunities and skill sets that complement the expertise of our own investment professionals. With that understanding, we continuously seek best-of-class partners who invest side-by-side with our investors and principals. A long history of important partnerships, often structured as investment platforms, has played a critical role in our success. Starwood also provides our joint venture partners with more than just capital. We are a strategic partner that offers access to transaction flow, creative and flexible structuring capabilities, expertise in the global capital markets and speed and certainty of execution.