Marriott International, Inc. (MAR / NYSE) today announced that it will sell six Residence Inn by Marriott hotels to Innkeepers USA Trust (NYSE / KPA) for approximately $89 million in cash and operating partnership units. Innkeepers will acquire the newly constructed properties as they open between April and September 1998. Innkeepers USA Trust is a hotel real estate investment trust (REIT), and the nation`s leading owner and acquirer of upscale, extended-stay hotel properties. The six hotels will bring to 44 the number of Residence Inns owned by Innkeepers.
The purchase price will be paid 85% in cash and 15% in operating partnership units from Innkeepers. Marriott will operate the six properties under long-term management agreements, bringing to 26 the total number of hotels managed by Marriott for the REIT.
“Innkeepers is the largest owner of Residence Inns and is a proven, quality owner that maintains its properties at the highest levels,” said William R. Tiefel, president, Marriott Lodging. “Our relationship with Innkeepers enables us to grow the Residence Inn system and maintain the integrity of the brand.
“When you combine Innkeepers` commitment to quality with Marriott`s management capabilities, based on our proprietary, proven systems and national network, you create an attractive situation for both companies,” Mr. Tiefel added.
The six Residence Inns will offer hotel features that provide extended-stay guests greater space to work and relax including a larger work desk, enhanced lighting in the guestroom and two-line telephones. “These are top-notch properties in some of the most desirable locations in the country with strong, underlying demand growth,” Mr. Tiefel noted.