Marriott sells three Edition hotels for $815mn
Abu Dhabi Investment Authority takes ownership of London and US hotels
Marriott International has sold its London Edition hotel and signed agreements for the sale of two other company owned Edition hotels to companies owned by the Abu Dhabi Investment Authority for a total of $815mn.
The London Edition opened in September 2013 and was conveyed to its buyer on January 7, 2014. The Miami Beach Edition and the New York Edition are under construction and expected to open in the second half of 2014, and the first half of 2015, respectively.
The total purchase price for the three Edition hotels is reported to be roughly equal to the aggregate estimated total development costs of all three hotels.
The hotels will each be operated by Marriott under long-term management contracts with their new owners, which are companies ultimately owned by the Abu Dhabi Investment Authority.
Marriott International chief executive officer, Arne Sorenson, said: "The sale of all three company-owned hotels is a powerful endorsement of our Edition brand. This transaction is a key component of our strategy to build the Edition brand by selectively developing spectacular, brand-defining hotels in gateway cities. We look forward to managing these hotels for many years."
The residential component of the Miami Beach Edition was not included in the transaction. Marriott will retain ownership of the residential units pending their sale to individual purchasers.
Edition Hotels was launched by Marriott in partnership with Ian Schrager and promises an intimate, individualised and unique guest experience.
Further Edition hotels are planned for Abu Dhabi, Los Angeles, Sanya, China, Gurgaon, India, and Bangkok.