Capital Allocators – Inside the Institutional Investment Industry #2: Barry Sternlicht – Masterclass in Real Estate in a Post-Covid World, EP.216
Dec 27, 2021
Barry Sternlicht, the visionary Chairman and CEO of Starwood Capital Group, shares his incredible journey in real estate investment. He discusses navigating the industry during the early 90s' S&L crisis and the rise of REITs. Sternlicht highlights lucrative post-Covid opportunities in multifamily and industrial sectors, contrasts blue and red state investments, and reveals strategic maneuvers in hotel acquisitions. He also emphasizes the importance of understanding political dynamics in emerging markets and offers wisdom on leadership and personal growth throughout his career.
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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 success by purchasing undervalued apartments and later selling them to Sam Zell.
Move to Hotels
- Sternlicht transitioned from apartments to hotels, starting with a deal involving Westinghouse Electric's hotels.
- This led to acquiring Hotel Investors Trust, renaming it Starwood Lodging, and growing its market cap significantly.
Acquiring Westin and ITT Sheraton
- Starwood Lodging's growth continued with the acquisition of Westin Hotels and later ITT Sheraton, outmaneuvering Hilton.
- This rapid expansion led to a $20 billion company, but faced challenges due to a change in paired share structures.