UPDATE 1-Starwood sells retail space in St. Regis NY hotel

* Sells retail space to GFC Fifth Avenue LLC

* Sale part of ongoing efforts to streamline business

NEW YORK, Nov 5 (Reuters) - Starwood Hotels & Resorts Worldwide Inc (HOT.N) said on Thursday it sold 24,700 square feet of retail space at its St. Regis New York hotel for $117 million and will use the proceeds to pay down debt.

Starwood sold the space to GFC Fifth Avenue LLC, an investment group led by the Chera family's Crown Acquisitions, Lloyd Goldman and the Feil Organization, the White Plains, New York-based company said in a statement.

The sale is part of Starwood's ongoing efforts to streamline its business. Earlier this week, the hotelier sharply cut its dividend and sold its Bliss spa and product company for $100 million. [ID:nN02433739] [ID:nN02443806]

In its most recently quarterly earnings report, Starwood reported $3.36 billion in long-term debt.

The $117 million sale price of the retail space represents a 5 percent capitalization rate on Starwood's expected net operating income for 2009. (Reporting by Deepa Seetharaman, editing by Gerald E. McCormick)