Hospitality Properties to buy 17 Marriott hotels

Maryland Watch

December 31, 1998

Hospitality Properties Trust, a Newton, Mass.-based hotel real estate investment trust, said yesterday that it agreed to buy 17 hotels from Marriott International for $201.7 million as part of its strategy to diversify revenue sources.

Bethesda-based Marriott will continue to operate the hotels, located in eight states, under a long-term lease through at least 2013 and pay a minimum rent of $21.3 million per year, according to Hospitality Properties Trust.

The transaction will increase the company's range of operations to at least 35 states. Hospitality said it bought four hotels Tuesday and expected to buy four in the first quarter. The rest, under construction, will be bought by Hospitality and leased back to a Marriott subsidiary in 1999.

The purchase includes two Marriott full-service hotels, three Marriott Residence Inns, three Marriott Courtyard hotels and nine Marriott TownePlace Suites hotels.

Marriott has other agreements to sell 24 hotels and senior living communities during 1999, said Arne M. Sorenson, Marriott's executive vice president and chief financial officer.

Pub Date: 12/31/98

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