A $400-million loan led by Dresdner Bank and co-underwritten by Dresdner and DePfa Bank AG, which led a consortium of nine international banks, and by a $100-million funding guarantee from Marriott International, backed the deal. The $400 million covered only 60% of the acquisition costs, which is estimated to be worth more than $700 million. The balance was funded by Millennium and its partners.

The venture also saw the formation of a new investment vehicle, MPE Hotel I LLC, which was capitalized by Millennium's principles and Victoria, a subsidiary of ERGO, and Provinzial, two German life insurance companies. The arrangement was motivated by conflicting business strategies of Millennium's equity partners, some of whom were nearing the end of their investment horizons, and others who saw this transaction as a opportunity to refinance major lodging properties at attractive rates.

The six properties are: The 280-room Ritz-Carlton, Boston, the oldest of the brand, which is expected to open next spring following a restoration; The Ritz-Carlton, New York, the 287-room former St. Mortiz on Central Park South, scheduled in open Winter of 2001/2; The 298-room Ritz-Carlton, Downtown New in Battery Park City, slated to open in October; the Ritz-Carlton, Boston across from the Boston Common, which has 191 room and plans to open its doors in September; the Ritz-Carlton, Washington, DC, which has 300 rooms and is open; and the Ritz-Carlton, Georgetown with 91 rooms that is slated to start welcoming guests in June 2002.

Millennium Partners now has more than $3 billion in mixed-used lodging, retail and residential properties under construction.