Marriott International Announces Sale of the Ritz-Carlton Kapalua Hotel For $144 Million to Capital Hotel Investments LLC
SM Newswire Friday February 2 9:30am
WASHINGTON, Feb. 2 /SM Newswire/ -- Marriott International, Inc.
(NYSE: MAR) today announced the sale of the Ritz-Carlton Kapalua (Maui,
Hawaii) for approximately $144 million to Capital Hotel Investments LLC, a
joint venture between Marriott International and affiliates of Blackacre
Capital Management LLC. In September 2000, Marriott International acquired
the Ritz-Carlton Kapalua (for a total cost of approximately $144 million) in
expectation of subsequently selling the hotel and retaining a management
agreement. Ritz-Carlton Hotel Company, an affiliate of Marriott
International, will continue to operate the hotel as a Ritz-Carlton under a
long-term management agreement. Capital Hotel Investments was advised by
Credit Suisse First Boston Corporation in the transaction.
"We are pleased to complete this follow-on transaction with Blackacre, and
we are excited about continuing to work together on future opportunities,"
said Arne M. Sorenson, executive vice president and chief financial officer of
Marriott International. "This acquisition brings the portfolio of Marriott-
managed full service properties owned by Capital Hotel Investments to six
hotels with a total value in excess of $500 million. We are committed to
working with Blackacre to expand the portfolio of hotels substantially above
this level. Our strategic alliance with Blackacre should continue to create
tremendous opportunities for both of our companies."
Ron Kravit, managing director of Blackacre noted, "As we had anticipated,
our venture with Marriott International is proving to be an excellent
opportunity to work closely with a top notch, world-class operator of real
estate assets with whom we continue to source a steady pipeline of attractive
investment opportunities."
MARRIOTT INTERNATIONAL, INC. (NYSE: MAR) is a leading worldwide
hospitality company with over 2,000 operating units in the United States and
57 other countries and territories. Marriott Lodging operates and franchises
hotels under the Marriott, Renaissance, Residence Inn, Courtyard, TownePlace
Suites, Fairfield Inn, SpringHill Suites and Ramada International brand names;
develops and operates vacation ownership resorts under the Marriott, Ritz-
Carlton and Horizons brands; operates Marriott Executive Apartments; provides
furnished corporate housing through its ExecuStay by Marriott division; and
operates conference centers. Other Marriott businesses include senior living
communities and services, wholesale food distribution, procurement services
and The Ritz-Carlton Hotel Company LLC. The company is headquartered in
Washington, D.C., and has approximately 149,000 employees. In fiscal year
1999, Marriott International reported systemwide sales of $17.7 billion. For
more information or reservations, please visit their web site at
http://www.marriott.com.
BLACKACRE CAPITAL MANAGEMENT LLC is a private real estate investment
management firm formed in August 1994. Blackacre is affiliated with Cerberus
Capital Management, L.P. and other funds and accounts under common management,
which in the aggregate have over $6 billion in committed capital under
discretionary management. Blackacre has historically conducted a significant
portion of its investment activities through partnerships and joint ventures
with a broad network of strategic operating and capital partners, enhancing
Blackacre's ability to source, analyze, structure and oversee a wide variety
of appropriate investment opportunities.
Note: This press release contains "forward-looking statements" within the
meaning of federal securities law, including statements concerning business
strategies and their intended results and similar statements concerning
anticipated future events and expectations that are not historical facts. The
forward-looking statements in this press release are subject to numerous risks
and uncertainties, including the effects of economic conditions, supply and
demand changes for hotel rooms, competitive conditions in the lodging
industry, relationships with clients and property owners, the impact of
government regulations, and the availability of capital to finance growth,
which could cause actual results to differ materially from those expressed in
or implied by the statements herein.
Source: | Marriott International, Inc.
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Contact: | Tom Marder, 301-380-2553, or thomas.marder@marriott.com, or
Nick Hill, 301-380-7484, or nick.hill@marriott.com, both of Marriott
International, Inc.
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