Marriott sells EDITION Hotels
Marriott International, Inc. has recently entered into a non-binding letter of intent for the sale of three EDITION Hotels subject to long-term management agreements. The three hotels (located in London, Miami Beach 2014, and Manhattan NYC 2015) are currently owned by Marriott and are under construction. The residential component of the Miami Beach EDITION would not be included in this transaction.
Marriott opened the first EDITION branded hotel, in Istanbul, two years ago in partnership with Ian Schrager, however further development ran into trouble with a major scandal on the Hawaii property whose owner locked Marriott out, as well as Schrager launching, at the same time, his own hotel brand STANDARD (Chicago). Next EDITION opening is schedule for this September in London.
The letter of intent contemplates a fixed sales price of approximately $800 million for the three hotels; this price is approximately equal to Marriott’s expected total acquisition and development cost.