Marriott International, Inc. (MAR / NYSE) today announced it has agreed to sell three Residence Inns, three Courtyard hotels, nine TownePlace Suites, and two full-service Marriott hotels to Hospitality Properties Trust (HPT / NYSE) for approximately $202 million in cash.
The 17 hotels were developed by Marriott International and will continue to be operated by the company under long-term, limited-recourse leases. Hospitality Properties Trust will hold security deposits on the leases equal to about 10.6 percent of the total sales price.
Seven of the hotels included in the transaction currently are in service. The other 10 hotels are under construction, and the sales of these latter properties are expected to be completed by September 30, 1999. The 17 hotels are located in eight states and include a total of 2,665 rooms.
“This transaction advances our strategy of operating and franchising hotels owned by others,” said William J. Shaw, president and chief operating officer of Marriott International. “We are pleased that Hospitality Properties Trust has chosen to expand its portfolio of Marriott International lodging properties.”
Arne M. Sorenson, executive vice president and chief financial officer of Marriott International, said, “This year, we have sold a total of 20 hotels and senior living communities, with an aggregate sales value of more than $345 million. In addition, we have agreements to sell during 1999 an additional 24 hotels and senior living communities with an aggregate sales value of more than $305 million. In each instance, we have retained operating rights to the properties under attractive, long-term agreements,” Mr. Sorenson noted.