PHILADELPHIA-Host Hotels & Resorts Inc. of Bethesda, MD reports it has sold an 89% stake in the city's largest hotel property—the Philadelphia Marriott Downtown—to Clearview Hotel Capital, LLC of Newport Beach, CA and funds managed by to Oaktree Capital Management LP of Dallas.
The sale price translated to a gross equity value of $303.4 million or $217,000 per key, according to the Inquirer. Host Hotels will retain the remaining 11% interest in the 1,400-room property.
"We are pleased to announce a sale that further reduces our exposure in non-core assets and brings our total dispositions since the beginning of 2012 to approximately $1.1 billion," states Struan B. Robertson, executive vice president and chief investment officer.
Robert Allen, general manager for operator Marriott Corp., says, "2013 was the busiest year ever for this hotel. We're doing very well."
Allen wouldn't disclose the hotel's occupancy rate, but noted Host has changed ownership three times in 19 years. He adds that Marriott has more than 30 years left on its 50-year agreement to manage the hotel. See story in The Inquirer.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
