The owners are hoping to get $1 billion or more for the upscale chain of 102 hotels, the report said. Marriott International and a real-estate investment trust controlled by Starwood are considered possible bidders for the Seattle-based chain.
The owners are also considering selling Westin to the public through a stock offering, the report said.
Goldman Sachs is handling negotiations with potential buyers because of Starwood's possible involvement in both sides of the deal, the report said.
Starwood Lodging Trust, a Phoenix-based public real-estate investment trust, is a leading contender to acquire Westin, the report said. The chairman and CEO of the trust is Barry Sternlicht, who is also president and chief executive of Starwood Capital Group.
"The situation is very fluid," Sternlicht said. But he added that "a few people have approached us," about buying Westin.
Westin is considered a plum in hotel industry at a time when the price of upscale hotels is moving up amid a flurry of purchases.
In Hawaii, Westin manages one hotel, the 761-room Westin Maui at Kaanapali, after a long Hawaii connection that once included managing the Ilikai Hotel and the Mauna Kea Beach Hotel.
Westin renewed its connection with the Mauna Kea when it was retained in late 1995 to handle mainland and international sales for that hotel and three others, which together make up the Prince Resorts Hawaii group.