Back in the spring, the Qatar Investment Authority began looking to buy the St. Regis hotels in both New York City and San Francisco, which insiders said could be worth as much as $1 billion. At the time, Starwood's merger with Marriott was not yet complete, and Starwood was looking to pare down its assets.
One of those deals has been completed: Marriott International has finalized the sale of The St. Regis San Francisco hotel to the QIA for a reported $175 million. Marriott will continue to manage the 260-room hotel under a long-term management contract.
"We have a strong and successful partnership with QIA and we are thrilled that this iconic hotel will expand QIA's collection of Marriott-branded hotels to the U.S.," Arne Sorenson, Marriott International's president and CEO, said in a statement.
The hotel is expected to undergo a renovation covering the guestrooms and public areas.
Real Capital Analytics estimates that the QIA has invested $7.5 billion in hotels since its 2005 founding, and purchased the St. Regis Rome in 2014 for just under $151 million.