Marriott Will Continue to Manage the Properties
Under Long-Term Contracts
|WASHINGTON, April 21, 2006 - Marriott International, Inc. (NYSE: MAR)
announced today the sale of its interest in the 50/50 joint venture with
Whitbread, which holds 46 hotels consisting of more than 8,000 rooms. Marriott
will receive approximately 100 million pounds Sterling (approximately $178
million) as its share of the proceeds from the sale of its interest in
the joint venture. The Royal Bank of Scotland plc (RBS) is acquiring the
joint venture in a transaction with a joint venture enterprise value of
951.4 million pounds (approximately $1.69 billion) including the assumption
by RBS of the joint venture's working capital position.
Marriott International will continue to manage the hotels under the Marriott Hotels & Resorts and Renaissance Hotels & Resorts brands, pursuant to new long-term management agreements that were entered into concurrent with the sale.
Arne M. Sorenson, chief financial officer and president of Continental European Lodging, said, "We are delighted to announce this transaction that demonstrates the strength of our brands and further consolidates our growth platform in the U.K. and Continental Europe." He continued, "Marriott International is now one of the most important hotel operators in the U.K. with 76 properties under management, and we look forward to pursuing new growth opportunities throughout the region."
Sorenson added, "This sale also marks the conclusion of a long and valued relationship with Whitbread, first as a major franchisee in the U.K., and most recently as our joint venture partner. We wish them many years of great success."
The Marriott/Whitbread joint venture was formed in May 2005 to acquire Whitbread's portfolio of franchised Marriott-branded hotels, with the express purpose of selling the properties pursuant to long-term Marriott International management agreements.
MARRIOTT INTERNATIONAL, INC. (NYSE: MAR) is a leading lodging company with nearly 2,800 lodging properties in the United States and 66 other countries and territories.
Marriott International, Inc.
|Also See:||Marriott International to Take Over Management of U.K. Hotels and Form Joint Venture With Whitbread to Sell 46 Hotels in the U.K. / March 2005|
|Whitbread PLC to Convert Majority of Swallow Group Hotels to Marriott Brands / Nov 1999|