Starwood says redevelopment plan for Sheraton Manhattan includes hotel, possible retail

Starwood working on NY hotel redevelopment plan

WHITE PLAINS, N.Y. — Starwood Hotels & Resorts Worldwide Inc. said Thursday that its redevelopment plan for the Sheraton Manhattan in Time Square includes a hotel and possibly retail and office space.

The 665-room property, which covers a full city block, will run as non-branded site starting in April. Starwood, whose other brands include St. Regis and the Westin, said it has received “considerable interest” from investors and developers for the project and has created a team to help sort through its options.

The hotel will stay open while Starwood makes a plan.

The hotel company now operates 13 New York hotels and plans to open six more there this year. Outside the city, Starwood plans to open 80 to 100 new and converted hotels in 2010, mostly in Asia.

Shares of Starwood rose $1.74, or 4.9 percent, to $37.18 in morning trading. The stock has traded in a range of $8.99 to $39.73 over the last year.