Barry Sternlicht

Distressed real estate became the launch point for Starwood

Sternlicht founded Starwood Capital Group in 1991 during the depths of the savings-and-loan crisis. The firm's own history records its first opportunity funds closing with tens of millions of dollars and deploying capital into distressed real estate, giving the business an acquisition-led rather than inheritance-led start. ^[1]

Starwood quickly used those investments to build larger operating platforms. Its history records the creation of Starwood Hotels & Resorts in 1995, the acquisition of Westin and later the $14 billion acquisition of ITT Sheraton, while Sternlicht served as chairman and chief executive. ^[1][2]

That hotel platform created brands such as W Hotels and expanded into hundreds of properties before Sternlicht stepped down as chief executive in 2005. Forbes has identified Starwood Capital and the hotel empire it helped create as the core business path behind his billionaire fortune. ^[2][3]

Private-equity ownership is distinct from the assets the firm manages

Starwood Capital now oversees a very large pool of real estate investments, but those assets belong to funds, partners and public vehicles rather than to Sternlicht personally. His wealth depends on founder ownership, management-company economics and investments attributable to him, not the firm's gross assets under management. ^[2][1]

The 1991 launch therefore matters more than any single later property value. Sternlicht converted professional real-estate expertise into ownership of a private investment manager, then repeatedly used that platform to create and scale operating companies whose value compounded the founder economics he retained. ^[1][3]