Hotel Online  Special Report

 
Molinaro Koger Structures Sale of Washington Marriott Hotel
on behalf of Angelo, Gordon & Co

 
Washington, DC – May 2, 2007 – Molinaro Koger (MK), announced today that the firm marketed and structured the sale of the Washington Marriott Hotel and retail complex to Rockpoint Group and Highgate Hospitality for an undisclosed amount on behalf of Angelo, Gordon & Co., Amerimar Enterprises, and Greenebaum & Rose Associates. Following the sale, the 472-room upscale business hotel will retain the Marriott brand and continue to be managed by Marriott International.

“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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About Molinaro Koger

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.

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Contact:

Sharon Lemon
slemon@mkhotels.com
1.970.769.0510


 
Also See: Sale of Sheraton Hotel Oklahoma City Arranged by Molinaro Koger / May 2007
Molinaro Koger Structures Sale of DoubleTree Hotel Tucson at Reid Park / April 2007
MK Capital Markets Welcomes Equity Specialist Bracken White / April 2007
Molinaro Koger Advises Hotelinvest Kalvebod A/S on Sale of Copenhagen Marriott Hotel / February 2007
Beej Das Joins Molinaro Koger as Managing Director, India / January 2007
Molinaro Koger Structures $169 Million Sale of Summerfield Suites Portfolio to Hersha Hospitality Trust on behalf of LodgeWorks / January 2007
MK Structures Disposition of Three Select Service Hotels in Metro-Birmingham, Alabama / December 2006
MK Capital Markets Secures Financing for Two Park City Hotels on Behalf of Navnish Development, LLC / September 2006
Molinaro Koger Structures Sale of Two Tempe, Arizona, Hotel Properties / September 2006
Molinaro Koger Structures Disposition of Westin Kierland Resort & Spa to Host Hotels & Resorts for $393 Million / September 2006
Sheraton Hotel Krakow, Poland Sold to Quinn Group for 45 Million in Transaction Structured by Molinaro Koger / August 2006
Molinaro Koger Welcomes Industry Veteran David Altobello as Vice President / August 2006
Molinaro Koger Structures Shamrock-Hostmark Acquisition of Radisson Hotel Princeton, New Jersey / May 2006
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Molinaro Koger Structures Sale of Hilton College Station & Conference Center / January 2005
The Outstanding Year that Was: MK Records $1.3 Billion in Hotel Real Estate Transactions in 2004 / January 2005
Molinaro Koger Structures Sale of Marriott Suites Hotel Bethesda / December 2004
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Molinaro Koger Arranges Sale of Crystal City Marriott Hotel / July 2004
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Molinaro Koger Structures Sale of Sheraton Hotel Washington, DC / June 2004
Molinaro Koger Advises in the Sale of Miami Beach Ritz Plaza Hotel — Kimpton to Rebrand and Manage / June 2004
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Molinaro Koger Closes 82 Transactions in 2003 / January 2004
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Molinaro Koger Closes 46 Transactions Through Third Quarter 2003 / October 2003
Molinaro Koger Selected to Market 7-Property Holiday Inn Portfolio on Behalf of FelCor / May 2003
Simon Allison, Former Finance Director of Hospitality Europe BV, Named Vice President, Molinaro Koger / April 2003
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