Short Takes: Marriott's Expansion | Fried Frank

BETHESDA, MD—Last week Marriott International signed agreements to acquire the Delta Hotels and Resorts brand and management and franchise business from Delta Hotels Limited Partnership, a subsidiary of British Columbia Investment Management Corp. for approximately $135 million.

The deal follows an announcement by the hotel group earlier in the month that it expects to reach the goal of one million rooms open or in development this year. "In 2014 alone, Marriott signed agreements for more than 650 hotels and 100,000 rooms to be added to its worldwide system over the next few years, a signing pace of nearly two new hotel deals a day," noted Arne Sorenson, Marriott's president and CEO.

The company also has a record pipeline of new hotel development of nearly 240,000 rooms--new hotels that expand Marriott's presence from 80 countries and territories to more than 100. The company is also rolling out a new concept hotel in Europe called Moxy, aimed at millennial travels. This trend was noted in E&Y's Global Hospitality Report, which we reported on separately here.

WASHINGTON, DC—Fried Frank represented an affiliate of Carr Properties in the deal with Fannie Mae to construct a 700,000 square-foot headquarters building at 15th and L Streets in Washington DC, replacing The Washington Post's current headquarters. The lease is the largest ever non-government lease in Washington DC.

The Fried Frank team was led by real estate partner Franz R. Rassman and included real estate associates Valerie L. Kelly, Neil G. Hood and Matthew P. Greeson.

BALTIMORE—DTZ completed a 15,000-square foot office/warehouse lease with Tower Resource Management at 7468 Candlewood Rd. in Hanover, MD. It is one of three buildings owned by TIAA-CREF, known as the Candlewood Commerce Center.

DTZ's Tilghman Herring and Jarred Testa represented the owner in this transaction, while MacKenzie's Dave Sciamarelli represented the tenant.