NEWTON, MA-Locally-based Hospitality Properties Trust purchased four hotels from Marriott International Inc. for $101.5 million. The hotels, along with the 31 other hotels the real estate investment trust owns and leases to Marriott, will now be leased to a subsidiary of HPT. Marriott will manage all 35 hotels through 2019.
The four hotels purchased by HPT, which currently owns 228 hotels in 37 states, include a 356-room, resort hotel in Kauai, Hawaii which was opened by Marriott in 1995; a newly developed Courtyard by Marriott with 295 rooms in California; and a 135-room TownePlace Suites hotel and a 114-room SpringHill Suites hotel, both located in Washington State.
In a released statement, John G. Murray, president of HPT says, “HPT is very pleased to expand its business relationship with Marriott. We believe this transaction demonstrates that HPT is able to design an innovative hotel ownership structure which permits HPT to increase its participation in hotel operating earnings using a taxable subsidiary without compromising the security aspects of our historical leases. Because 32 of these 35 hotels opened within the past four years, our bottom line participation will be modest initially, but we believe it may increase over the extended terms of these contracts.”