Host Marriott extends offer to hotel investors

Maryland Watch

December 24, 1996

Host Marriott Corp. yesterday extended a $36 million offer to buy a controlling stake in a group that owns two upscale Florida hotels.

By extending the offer until Jan. 10, the Bethesda-based lodging owner hopes to garner 45 percent ownership of Marriott Hotel Properties Ltd. Partnership. As of Friday -- the original deadline set by Host Marriott -- 39 percent of the partnership units had been tendered. Host Marriott is offering $80,000 per unit.

The partnership owns the 1,503-room Marriott Orlando World Centre Hotel and a 50 percent interest in the 624-room Marriott Harbor Beach Resort in Fort Lauderdale.

The offer is well below the amount investors believe the partnership units are worth, however, and the hotels have not performed as well as Marriott projected when it formed the group in 1985. To date, Marriott Hotel Properties Ltd. Partnership investors have received just one-fifth of the returns that had been anticipated.

Host Marriott made the offer, its fifth for a partnership stake in 1996, as part of a strategic plan to acquire upscale lodging properties. The company controls 79 such properties.

Pub Date: 12/24/96

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