Grande Lakes Orlando Refinances Debt
WASHINGTON, Jan 04, 2005 /PRNewswire-FirstCall via COMTEX/ -- Marriott International, Inc. (NYSE: MAR) today announced that Grande Lakes Orlando, owned by an affiliate of Thayer Lodging Group, refinanced its original construction financing in late 2004 with Barclay's Capital. As a result, Marriott International received $95 million in repayment of principal and interest of its mezzanine loan to the venture. Marriott International was also released from a $75 million principal guaranty in connection with the refinance.
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David Weymer, Managing Director of Thayer Lodging, said, "Grande Lakes Orlando is our flagship project and this new financing enhances the long term value to our investors. It also validates the value of this world class resort and confirms our vision in purchasing the property in 2001." Totaling $400 million, the Barclay's loan has an outside maturity date of 2010. Thayer Lodging Group is a private owner of 23 hotels based in Annapolis, Maryland.
"This transaction not only reduces the cost of debt for the venture, it also allows Marriott International to recycle substantial capital," said Arne Sorenson, Marriott International's Executive Vice President and Chief Financial Officer. "With the upturn in lodging demand and the seasoning of new hotels, Marriott International is likely to recover other loans and guarantees entered into in prior years. We expect to reinvest the cash in attractive investment opportunities, including share repurchases."
Pending reinvestment, Marriott International's 2005 net interest will decline as a result of the Grande Lakes refinancing which should reduce the company's earnings per share in 2005 by approximately $0.02.
Grande Lakes Orlando is located on a 500-acre estate featuring a 584-room Ritz-Carlton and a 1,000-room JW Marriott. Complementing these two grand structures is an 18-hole Greg Norman-designed championship golf course and a 40,000-square-foot spa. The properties are managed under long-term agreements with Marriott International.
Note: This press release contains "forward-looking statements" within the meaning of federal securities laws, including the expected interest income and earnings impact of the refinancing; our anticipated proceeds from loan repayments; and similar statements concerning anticipated future events and expectations that are not historical facts. We caution you that these statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including the future performance of the Grande Lakes Orlando hotels and golf course; the pace and extent of the current recovery in both the economy and the lodging industry; supply and demand changes for hotel rooms; competitive conditions in the lodging industry; relationships with clients and property owners; any of which could cause actual results to differ materially from those expressed in or implied by the statements herein. These statements are made as of the date of this press release, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
MARRIOTT INTERNATIONAL, INC. (NYSE: MAR) is a leading lodging company with over 2,600 lodging properties in the United States and 64 other countries and territories. Marriott International operates and franchises hotels under the Marriott, JW Marriott, The Ritz-Carlton, Renaissance, Residence Inn, Courtyard, TownePlace Suites, Fairfield Inn, SpringHill Suites and Bulgari brand names; develops and operates vacation ownership resorts under the Marriott Vacation Club International, Horizons, The Ritz-Carlton Club and Marriott Grand Residence Club brands; operates Marriott Executive Apartments; provides furnished corporate housing through its Marriott ExecuStay division; and operates conference centers. Marriott is also in the synthetic fuel business. The company is headquartered in Washington, D.C., and has approximately 128,000 employees. In fiscal year 2003, Marriott International reported sales from continuing operations of $9 billion. For more information or reservations, please visit our web site at http://www.marriott.com.
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SOURCE Marriott International, Inc.
Tom Marder of Marriott International, Inc., +1-301-380-2553, or thomas.marder@marriott.com
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