Marriott Extends Tender Offer to Acquire Disputed Courtyard Hotels

BETHESDA, MD-Marriott International and Rockledge Hotel Properties have extended a $434-million tender offer to acquire 120 Courtyard by Marriott hotels held by two limited partnerships. The offer is good until midnight, Sept. 22, one week longer than the previous deadline of Sept. 15.The deal would settle a lawsuit by investors who allege that Marriott defrauded them by charging unjustified management fees. Marriott denies any wrongdoing.

The Bethesda hotel giant needs a majority of investors in each of the partnerships to agree before it can acquire the hotels. Courtyard by Marriott Limited Partnership consists of 50 hotels and Courtyard by Marriott II Limited Partnership owns 70 hotels.

Some investors, joined by union allies, have opposed the sale of the partnership units to Marriott, alleging that Marriott has offered a price that undervalues the holdings.

The tenders in the first partnership are running in favor of the sale, with the opposition running closely behind, according to Gemisys Corp., the claims administrator for the tender offers. In a statement from Marriott, Gemisys said that “approximately 454 units” voting in favor and “approximately 400 units” voting against. The issue could swing either way, with 267 units not having voted, and another 29 abstaining.

For the Courtyard II partnership, about 1,187 units had voted in favor, 21 units had voted against, 29 had abstained and 233 had not yet voted.