We went there to see if Starwood still owned while we were visiting and was told that the resort was taken over by Pleasant Holiday's and all the people that worked for Starwood got fired and had to re apply to Pleasant Holiday's. Anyone heard of this?
Oddly, the Sheraton Keauhou Bay hotel is still on the Starwood website - http://www.sheratonkeauhou.com/
I'm surprised it's still on SPG since you reported more than a month ago that the sign was down and they were under new management - http://www.tugbbs.com/forums/showthread.php?t=80270
Pleasant Holidays appears to be a travel consolidator - www.pleasantholidays.com - maybe they took over the office space formerly used as the Starwood Sales office?
They are still taking Sheraton Reservations at this resort I was told. They just aren't selling any new ones. Also, while there I spoke to a couple eating next to us and they said that they were rather unhappy with the accomodations there.