WASHINGTON, DC-Three Marriott hotels totaling 671 rooms have traded to LA Sky Harbor LLC. HEI Hotel & Resorts was the seller of the properties; the deal was brokered by HFF. The three properties are the Atlanta Marriott Norcross, the Fullerton Marriott at CSU Fullerton, and the Detroit Marriott Southfield. HFF's Daniel C. Peek, Bill Stadler, John Bourret, Max Comess, and Cyrus Vazifdar worked on the transaction.

The strong franchise brand and the hotels' strong year-over-year earnings generated broad appeal, Stadler says in a prepared statement. "Additionally, investors were attracted to the value creation afforded by the planned renovations enhancing future yields."

Indeed, times could not be better for Marriott hotels – at least in most of its locations. Washington, DC, hotels, for that brand, for example are underperforming. Arne Sorenson, president and CEO of Marriott International, told listeners in the company's recent earnings call that North American company-operated RevPAR increased 5.3% with 4.3% higher room rates. Also, occupancy rates and room rates were largely at 2007 peak levels or higher.

Also, in general, now is a good time for hotel acquisitions. Jones Lang LaSalle reports that the number of hotel transactions rose more than 50% for the first 6 months of 2013 over the comparable period last year. In addition, they are expected to top $18 billion for 2013.

Instant Insights /

HEI Sells 3 Marriott Hotels

Related Stories

Recommended For You