Host Marriott to purchase 2 more hotels One is near Dulles, other in Oklahoma

Lodging

March 12, 1996|By Kevin L. McQuaid | Kevin L. McQuaid,SUN STAFF

Host Marriott Corp. yesterday announced agreements to acquire two hotels for $51 million, the latest in a long line of transactions over the past two years aimed at focusing its portfolio on upscale lodging properties.

Included in the Bethesda-based hotel owner's planned purchases is the 10-story Washington Dulles Marriott Suites Hotel, a 254-suite property within the Dulles Worldgate Center and roughly two miles from the Dulles International Airport.

With that $28.3 million acquisition from the Charles E. Smith Cos., Host Marriott will own six projects in the Washington metropolitan area, including the Metro Center hotel downtown and the Washingtonian Center in Gaithersburg. "That property is a perfect fit for Host Marriott," said Robert T. Koger, president of Molinaro Koger, a Fairfax, Va.-based brokerage firm specializing in hotel sales. "It's a high quality property that should continue to improve and be a market leader for years to come."

Host Marriott, which also plans to buy the 12-story, 354-room Oklahoma City Marriott, said the two new properties generated $6.1 million in earnings last year before interest, taxes and other noncash charges.

Both properties will continue to be managed by Marriott International Inc., its sister firm which operates hotels.

The company declined to provide average occupancy figures for the hotels, the purchase price as a percentage of replacement costs or how much Marriott International will glean in fees from the properties.

The acquisitions continue Host Marriott's strategy to buy full-service or upscale hotels, while paring limited-service lines from its 93-hotel portfolio, which is valued in excess of $3.5 billion.

"These two properties will help us maintain our acquisitions momentum," said Terence C. Golden, Host Marriott's president and chief executive.

Pub Date: 3/12/96

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