Marriott International, Inc. (NYSE:MAR) today announced that it has agreed to sell one Residence Inn, two Courtyard by Marriott hotels, three SpringHill Suites hotels and three TownePlace Suites hotels to CNL Hospitality Corp. for approximately $100 million in cash.
Marriott International developed and will continue to operate the nine hotels under long-term management agreements with an affiliate of Crestline Capital Corporation (NYSE:CLJ), which is leasing the properties from an affiliate of CNL Hospitality Corp. Five of the hotels included in the transaction are currently open. The other four hotels are under construction, and the parties expect sales of these latter properties to be completed during the fourth quarter of this year. The nine hotels are located in Georgia, Kansas, Maine, Massachusetts, New Jersey, North Carolina, Utah and Virginia and include a total of 1,143 rooms.
This transaction continues to advance our strategy of managing hotels owned by others, said William J. Shaw, president and chief operating officer of Marriott International. We are pleased that CNL Hospitality Corp. and Crestline Capital Corporation have chosen to expand their portfolios of Marriott International lodging properties, Mr. Shaw added.
Arne M. Sorenson, executive vice president and chief financial officer of Marriott International, said, This year, we have sold a total of 30 hotels and senior living communities with an aggregate sales value of more than $380 million. In addition, we have agreements to sell within six months an additional 10 hotels, which are under development and have an aggregate sales value of approximately $216 million, $146 million of which we expect to close this year. In each instance, we have retained rights to manage the properties under long-term agreements.