Abu Dhabi Fund Buying 3 Editions from Marriott. What Does this Mean to Marriott & the Edition Brand?
August 19, 2013 4:29am
by the JMBM Global Hospitality Group®
For the most recent update on this topic, click here
By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
15 August 2013
Hotel Lawyer on the reported sale by Marriott of 3 Edition hotels.
Craig Karmin and Alexandra Berzon of the Wall Street Journal broke a big story yesterday evening which appeared in the August 15, 2013 US edition of the paper at page C3. The headline is "Marriott Close to Deal to Sell Three Hotels to Abu Dhabi Fund."
The story, in which I am quoted, describes reports from people close to the deal, that Marriott International is about to close a sale of 3 Edition hotels in London, New York and Miami Beach. The reported buyer is Abu Dhabi Investment Authority, or ADIA.
Other highlights of the article:
So what does this transaction mean?
Here is what I think this transaction means:
Have you ever stayed in a Marriott Edition, had dinner or drinks at one, or asked your assistant to book you into one at a city you are traveling to? Me, neither. But if Marriott stays the course and the river doesn't rise, that could change.
Selecting the right brand and operator
Selecting the right brand and operator for its hotel is one of the most important decisions a hotel owner will make. It is a decision that will affect the profitability and value of the hotel for a very long time. The selection process must be intentional and disciplined and should take into account the owner's needs, the operator's capabilities and the terms of their agreement.
No matter how strongly a brand may court an owner, or how strongly an owner feels about the "perfect" brand for its property, a disciplined approach to selecting an operator is always the best approach. To assist owners in this process, we have developed the proprietary "Hotel Management Agreement Procedure to Recruit an Operator" or HMA PRO™.
JMBM's HMA PRO™ Checklist is a 50-point, detailed list of all the business and legal issues which an owner needs to resolve prior to or during the earliest stages of negotiating the term sheet or letter of intent (LOI) with the operator. All the other matters are more technical items that can be hashed out in the actual negotiation of the Hotel Management Agreement itself, after the term sheet or LOI is finished.
How to get a great hotel operator
The 5 biggest mistakes owners make in pursuing hotel management agreements (and how to avoid them)
Hotel Management Agreements -- the HMA Handbook
The Hotel Management Agreement (HMA), which allocates risk between the hotel operator and the hotel owner, is critical to the successful and profitable relationship between the owner and operator. Owners and operators with a well-thought-out and fair agreement can avoid the kind of expensive litigation that surrounds the termination of an operator. We have covered HMA issues extensively in the Hotel Law Blog, and have compiled them in to the HMA Handbook. To register for your free copy, go to HMA Handbook.
This is Jim Butler, author of www.HotelLawBlog.com and hotel lawyer, signing off. We've done more than $60 billion of hotel transactions and have developed innovative solutions to help investors be successful in bidding for hotel acquisitions, and helping investors and lenders to unlock value from troubled hotel transactions. Who's your hotel lawyer?
global hospitality group®,
Jim Butler is a founding partner of JMBM, and Chairman of its Global Hospitality Group® and Chinese Investment Group™. Jim is one of the top hospitality attorneys in the world. GOOGLE "hotel lawyer" and you will see why.
Jim and his team are more than "just" great hotel lawyers. They are also hospitality consultants and business advisors. They are deal makers. They can help find the right operator or capital provider. They know who to call and how to reach them.
Contact: Jim Butler
Important News for Hospitality Executives: How the New Tax Act Could Affect Your Estate Plan
California Labor & Employment Law Update: Key Changes in 2017 and What’s Slated for 2018
ADA Compliance & Defense Lawyer Update: 99 ADA Lawsuits Dismissed as Fraudulent and Malicious
Homeland Security Warns Against Threats to US Infrastructure
Resort Fee Litigation Advisory Group: How to Avoid Litigation on Resort Fees and Other Mandatory Hotel Charges
Hotel Lawyer: Tips on Negotiating Your Annual Hotel Budget
Resort Fee Litigation Advisory Group: How Resort Fees Became an Explosive $2.7 Billion Issue
Resort Fee Litigation Advisory Group: National Task Force of 47 Attorneys General Goes After Resort Fees
Resort Fee Litigation Advisory Group: The FTC Takes Aim at Hotel Resort Fees (Again) - The FTC 2017 Report
Resort Fee Litigation Advisory Group: Impending Eruption of Litigation over Resort Fees?
Hotel Lawyer: Tax Alert for Partnerships and LLCs
EB-5 Finance Lawyer: President Trump's Budget Deal Includes Extension of EB-5 Through 12-8-17
EB-5 Financing Lawyer: What JMBM Does to Help Developers With EB-5 Construction Financing
EB-5 Financing Lawyer: Why You Do NOT Want to Form Your Own Regional Center
EB-5 Financing Lawyer: The 5 Questions Every Developer is Asking About EB-5 Financing
JMBM's Global Hospitality Group Announces the Publication of an EB-5 Handbook for Developers
EB-5 Financing Lawyer: EB-5 Construction Financing Term Sheet for Top Developers
EB-5 Financing Lawyer: FAQs: Essentials of EB-5 Construction Financing for Developers
EB-5 Financing Lawyer: More than $1.5 Billion of EB-5 Construction Financing Closed for JMBM Clients
EB-5 Finance Lawyer: Are Hotels Still the Darling of EB-5 Financing?
Please login or register to post a comment.