Marriott Divests Six Hotels for $52M on Heels of Starwood Acquisition Announcement

by Haisten Willis

NEW YORK CITY — W. P. Carey Inc. (NYSE: WPC), a New York-based REIT, has acquired a portfolio of six Courtyard by Marriott hotels for $52 million.

The portfolio is net leased to a wholly owned subsidiary of Marriott International Inc. The leases have a remaining term of approximately 11 years and include fixed rent escalations.

The deal was announced just days after Marriott agreed to buy Starwood Hotels & Resorts Worldwide for $12.2 billion. The acquisition will create the world’s largest hotel company with 30 brands under its belt.

The portfolio has shown growth in average daily rate, occupancy and revenue per available room (RevPAR), and has generated consistent operating margins and rent coverage, according to Marriott. In addition, the company says each hotel within the portfolio has received high guest satisfaction ratings.

“The acquisition of the Courtyard by Marriott portfolio presented the opportunity to acquire six established operating properties with strong performance,” says Jason Fox, president of W. P. Carey. “The steady, predictable cash flows and annual rent escalations, coupled with the strength of Marriott International’s brand and credit, made this an ideal addition to the W. P. Carey portfolio.”

In business since 1957, Marriott International Inc. is a global lodging company with more than 4,300 properties in 85 countries and territories. Marriott has an equity market capitalization of approximately $19 billion and is rated investment grade by both Standard & Poor’s and Moody’s.

W.P. Carey’s stock price closed at $60.55 on Tuesday, Nov. 17, down from $65.92 one year ago. The company specializes in corporate sale-leaseback and build-to-suit financing along with the acquisition of single-tenant net lease properties.

— Haisten Willis

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