X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.