Capital Allocators – Inside the Institutional Investment Industry Barry Sternlicht – Masterclass in Real Estate in a Post-COVID World (Capital Allocators, EP.216)
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Oct 4, 2021 Barry Sternlicht, Chairman and CEO of Starwood Capital Group, has a remarkable career managing $95 billion in real estate investments. In this engaging discussion, he shares his early entrepreneurial journey and the evolution of innovative strategies in real estate amidst COVID-19. Sternlicht highlights the shifts in investment preferences, the challenges of global markets like China and Brazil, and his explorations in other asset classes, including SPACs and cryptocurrencies. His insights underscore adaptability and the importance of intellectual humility in navigating uncertain waters.
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Early Career Success
- Barry Sternlicht's real estate career began during a downturn, marked by the S&L crisis.
- Despite this, he achieved early success, tripling a $50 million investment in 18 months by buying and selling apartments.
From Apartments to Hotels
- Sternlicht transitioned from apartments to hotels, acquiring Westin Hotels privately with Goldman Sachs.
- He later took Starwood Hotels public, growing it from an $8 million to a $20 billion company in three years.
Acquiring ITT and Paired Shares
- Starwood acquired ITT Sheraton, a $14 billion company, despite competition from Hilton.
- This success led to a clash with Bill Marriott, who successfully lobbied to eliminate Starwood's paired share structure.