Friday August 16th, 2013 - 10:28AM
BETHESDA, MD—Marriott International, Inc. has entered into a non-binding letter of intent for the sale of three EDITION hotels subject to long-term management agreements.
The hotels—located in London, Miami Beach and Manhattan—are currently owned by Marriott and are under construction. The residential component of the Miami Beach property would not be included in the sale; the company would retain ownership pending their sale to individual purchasers.
The letter of intent contemplates a fixed sales price of approximately $800 million for the three hotels; this price is approximately equal to Marriott's expected total acquisition and development cost. According to the company, increases in estimated development costs would not result in higher hotel sales prices.
Should the transaction move forward, the company expects each sale would occur after construction is complete, with the company retaining long-term management agreements. The London property is scheduled to complete within the next thirty days, while the Miami Beach hotel is expected in the second half of 2014 and the New York property following in early 2015.