Involves 29 Renaissance Hotels and Three Courtyard Hotels
|WASHINGTON, June 23, 2005 - Marriott International, Inc. (NYSE: MAR),
CTF Holdings Ltd., Sunstone Hotel Investors, Inc. (NYSE: SHO), Walton Street
Capital, L.L.C., and Tarsadia Hotels announced today that they have substantially
completed the set of purchase and sale transactions originally announced
on April 27, 2005 involving 29 Renaissance Hotels & Resorts and three
Courtyard hotels, and certain joint venture interests.
Under the terms of the agreement, Marriott agreed to purchase 32 hotels and certain joint venture interests from CTF for the aggregate price of $1.452 billion. That agreement permitted Marriott to designate purchasers at closing. Marriott designated Walton Street to purchase eight hotels for $578 million and Sunstone to purchase five hotels and a joint venture interest for $419 million. Marriott also designated Tarsadia Hotels to purchase two hotels for $29 million. The closings as to Walton Street, Sunstone, and Tarsadia are complete. Marriott will continue to manage the hotels purchased by Walton Street and Sunstone under long-term agreements. The two hotels purchased by Tarsadia will be operated under short-term franchise agreements.
Marriott closed on 12 hotels for an aggregate price of $374 million, and is currently discussing the sale of a number of these hotels with potential purchasers. Closing on the five remaining hotels and a joint venture interest, which represent $52 million of the total purchase price, has been postponed pending receipt of certain third party consents. Closing on those hotels is expected to occur before the end of the year.
Marriott and CTF exchanged legal releases effective as of the closing date, and the litigation between the two companies will now be dismissed.
This press release contains "forward-looking statements" within the meaning of the federal securities laws, including the anticipated closing on the purchase of the remaining hotels described above.
MARRIOTT INTERNATIONAL, INC. (NYSE: MAR) is a leading lodging company with more than 2,600 lodging properties in the United States and 65 other countries and territories.
Marriott International, Inc.
|Also See:||Sunstone Hotel Investors LLC and Tarsadia Hotels Expanding by Going After Weaker Hotels in Key Markets / Sandi Cain / June 2003|
|Tarsadia Boosting Upscale Hotel Holdings With Sutton Place Hotel in Newport Beach Buy / Sandi Cain / August 2004|