�This asset was truly a rare and unique opportunity, based not only on its irreplaceable location in the nation�s capital, which draws some of the highest per-night room rates in the U.S., but also due to the area�s high barriers to entry combined with the hotel�s $15 million retail and guest room expansion,� said Rob Koger, President of Molinaro Koger, in announcing the sale.

�Naturally, we are pleased that MK�s ability to communicate this asset�s unique attributes and value elicited strong investor interest that resulted in a sale which meet our clients� disposition goals,� commented Ali Baheri, Senior Vice President of MK�s DC office, who marketed the property and arranged the sale. 

Due to rising land prices, historically high oil prices, the high cost of labor, and scarcity/rising cost of building materials, construction costs are at an all time high and rising rapidly. Washington, D.C., in particular, is one of the most expensive markets in which to build due to limited quality land sites, a wealth index of 143% (US average is 100%), and strict government regulations. 

�Given these factors, combined with the area�s very strong office and residential markets, new hotel supply additions in downtown, Washington, DC are unlikely, particularly in the full-service upscale hotel segment,� continued Mr. Baheri. �As a result the purchaser has obtained an irreplaceable asset in an equally irreplaceable location.�

The Washington, D.C. lodging market benefits from numerous demand generators including businesses, ranging from high-tech to international trade, government and military, tourism, and conventions. Due to its favorable business climate, strong tourism appeal, and abundant government and military demand, Washington is regarded as one of the premier lodging markets in the nation. Since 1995, overall revenue in the market has nearly doubled, while supply has increased by just 11%.

Ideally located at the intersection of 22nd and M streets in the city�s exclusive West End, the Washington Marriott Hotel is within walking distance to the area�s primary business demand generators, historic Georgetown and minutes from such landmarks as the White House, the Smithsonian Museums, National Mall, and numerous art galleries and historic sites. The hotel�s first floor features a three-story atrium, palatial lobby and concierge lounge. Additional features of the hotel include the Atrium Restaurant and Court Lounge, a club level, indoor pool, Jacuzzi and health club, guest laundry and more than 11,500 square feet of meeting space.

During the last 12 months MK has structured more than $3 billion in hotel real estate worldwide. For further information about this transaction and current hotel property offerings, please contact MK at 703.760.9600 or via www.mkhotels.com.
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Founded in 1959, Molinaro Koger (MK) is the world�s leading hotel-exclusive real estate brokerage, advisory and capital markets firm. MK provides clients with unparalleled service and commitment. During the past four decades the company has closed more than $15 billion in hotel property sales. Headquartered in Washington, DC, MK�s offices are located in Atlanta, Chicago, Cincinnati, Dallas, Los Angeles, Phoenix, San Francisco, London, Beijing, and Shanghai. 

MK structures the transactions of luxury hotels and resorts, and urban and mid-scale properties throughout the Americas, Europe, and the Far East.  In the last 12 months MK has completed more than $3 billion in hotel transactions.  The firm closes, on average, more than 75 hotel property sales each year.  MK employs 20 hospitality advisor professionals and 40 support staff in administration, marketing, finance, technology and operations.  Each member of the MK team possesses a unique perspective and invaluable insight. Together they have leading-edge expertise in every aspect of the hospitality business.  The tremendous pool of talent among MK�s professionals makes for a powerful, results-driven sales team.  MK can be accessed online at www.mkhotels.com.