Starwood Hotels & Resorts Worldwide has sold its leasehold interest in the 303-bedroom Park Lane Hotel, London, to Sir Richard Sutton's Settled Estates (SRSSE). Starwood will continue to operate the hotel under a new long-term management contract under its Sheraton brand.
The hotel, located on Piccadilly overlooking Green Park, will now undergo a major renovation in the autumn.
SRSSE owns and manages urban and rural estates and businesses on behalf of the Sutton family. The London estates include properties in Mayfair and Soho such as hotels, restaurants, retail space and offices.
Michael Wale, president, Europe, Africa and the Middle East for Starwood Hotels & Resorts Worldwide said that SRSSE shares Starwood's vision for the Park Lane Hotel to be "a brand-enhancing property".
"Our new long-term management contract for this hotel puts a foothold for the Sheraton brand in the centre of London and the property will offer a unique experience to our guests and corporate customers for many years to come."
Christopher Lacey, managing director of SRSSE, added: "The Estate is delighted to be in the hotel trade and working with one of the world's preeminent hospitality operators on one of the most widely-recognized global hotel brands.
"We look forward to repositioning The Sheraton Park Lane Hotel and reinforcing its reputation as one of London's leading luxury hotels."
Sheraton has 430 hotels worldwide, with a further 100 under development. The brand is currently spending £6.5m on improving the brand.
Alongside Sheraton, Starwood operates a further eight brands (including St Regis, W and Le Meridien) across 1,200 properties in 100 countries.