Bethesda-based Marriott International Inc. announced that it has agreed to sell nine hotels for approximately $100 million in cash to an affiliate of CNL Hospitality Corp.
The sale of the hotels, none of them in the Baltimore metropolitan region, is part of a Marriott plan to develop and then shed ownership of hotel properties.
"This transaction continues to advance our strategy of managing hotels owned by others," said William J. Shaw, president and chief operating officer of Marriott International. "We are pleased that CNL Hospitality Corp. and Crestline Capital Corp. have chosen to expand their portfolios of Marriott International lodging properties."
Marriott, the largest U.S. hotel operator, will continue to manage the hotels under an agreement with an affiliate of Crestline Capital Corp., which is leasing the properties from Orlando-based CNL. Marriott has a long-term arrangement with Crestline, also based in Bethesda, to manage properties that Crestline controls.
Four of the hotels are still under construction, and the sales are expected to become final in the fourth quarter of 2000.
The hotels to be sold total 1,143 rooms and are located in Virginia, New Jersey, North Carolina, Georgia, Maine, Kansas and Utah.
The properties will continue to operate under Marriott flags including Residence Inn, Courtyard by Marriott, SpringHill Suites and TownePlace Suites.
Marriott International has sold 30 hotels and senior-living facilities worth more than $380 million. The company has agreements to sell another 10 hotels, still under development, with a value of $216 million.
The company will continue to manage all the properties under long-term agreements.
Marriott International shares closed yesterday at $39.50, down 88 cents.