The sale is part of the estimated $500 million in dispositionsBoston Properties has planned for 2007 and was announced atWednesday's Q4 2006 earnings call. Not including 5 Times Square inNew York City, which is slated to close this quarter, the companyhas identified $500 million worth of assets that will hit themarket by the end of Q1, according to Doug Linde, EVP and CFO.

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"The exceptionally strong demand for our type of asset byselectively selling certain properties, while we know that the NOIfrom those assets is going to grow over time we also think that theunderwriting expectations that are embedded in current marketpricing justifies harvesting to the significant market value wehave created in some properties even at the expense of moderatelyreducing our portfolio size," Linde said.

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Over the last two years Boston Properties has sold more than$3.5 billion of properties. The latest disposition becomes part ofan emerging hotel sector in Boston that has seen nine hotels enterthe market for sale in the last two years.

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"It's one of the top performing properties in the city and oneof the top performing properties in the Marriott chain," MattArrants, with Pinnacle Advisory Group, tells GlobeSt.com.

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Arrants says he expects competition for the asset to be stiffwith the final selling price to be between $400,000 and $600,000per room. The hotel's prime waterfront location just steps fromBoston's Financial District and adjacent to the New EnglandAquarium could make the property highly sought after byinstitutional investors and REITS.

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"I think it will be somewhat competitive because it's just sucha landmark asset," Arrants says. "It's in arguably one of the bestlocations in the city and has a strong track record andhistory."

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The Marriott Long Wharf is among nine hotel properties in Bostonto be placed on the market since 2005. The pricing is in line withrecent Boston hotel sales. The 273-room Ritz Carlton, whichrecently sold for $170million to Taj Hotels, Resorts and Palaces of Mumbai,India. The sale factored out to $622,000 per room. The 149-roomCopley Square Hotel in the Back Bay recently sold to CapStar HotelCo. of Arlington, VA, for $390,000 a room, or about $54 million,Arrants notes. Earlier this week, Diamond Rock Hospitality Co.acquired the 793-key Westin Waterfront Boston Hotel and an adjacentproperty for $330.3million.The seven-story, 420,000-sf Marriott Long Wharffeatures 391 rooms, 11 suites and 17 meeting rooms totaling 10,825sf, according to Boston Properties website. It is also home to theOceana Restaurant.

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Boston Properties declined to comment and officials from byHodges Ward Elliott did not return calls from GlobeSt.com in timefor deadline.

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