By Andy Sambidge
Companies owned by Abu Dhabi Investment Authority buy three properties in UK and US
Marriott International has confirmed the sale of three of its hotels to companies owned by the Abu Dhabi Investment Authority.
The hotel operator said it has offloaded Edition-branded properties in London, New York City and Miami Beach in a deal worth $815m.
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 said in a statement.
The London Edition opened in September 2013 and has been conveyed to its buyer while the Miami Beach and the New York properties are under construction and expected to open in the second half of 2014, and the first half of 2015, respectively.
Marriott said it expects to convey each hotel individually to the new owner after construction is complete.
“The sale of all three company-owned hotels is a powerful endorsement of our Edition brand,” said Arne Sorenson, president and chief executive officer of Marriott International.
“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 this transaction with Marriott retaining ownership of the residential units pending their sale to individual purchasers.
Edition Hotels, launched by Marriott in partnership with Ian Schrager, are also planned for Los Angeles; Abu Dhabi; Sanya, China; Gurgaon, India; and Bangkok.
Marriott International has nearly 3,900 properties in 72 countries and territories and reported revenues of nearly $12 billion in fiscal year 2012.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.