John Paulson’s Paulson & Co. acquired a 7% stake in Starwood Hotels & Resorts last quarter, making them the largest shareholder.
The New York-based hedge fund held 12 million Starwood shares at the end of June, reports Crain’s. Paulson, known for hopping on companies eyeing change, grabbed the stake as Starwood looks at strategy changes and a possible sale.
The Starwood brand includes the W, Sheraton, and St. Regis. Starwood stock ended last week at $75.39, down from $87.53 at the end of April. The brand has fallen behind competitors including Marriott International and Hilton Worldwide Holdings. Writes Crain’s:
“The probability of a big strategic move is a lot lower than some people seem to think,” said Lukas Hartwich, a lodging analyst at Newport Beach, California-based Green Street Investors. “But it’s a valuable company with a lot of valuable brands. It may look a little beaten up right now, but it’s attractive once the company refocuses a bit.”
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