Washington, DC-based Marriott developed the 347-room Bridgewater Marriott and the 405-room San Francisco Courtyard and will retain an equity interest in the California property.
Currently, CNL owns 45 rooms in 21 states with an aggregate of 10,000 rooms. The company was formed in 1997 by CNL Financial Group Inc. to direct its hotel investment and development efforts. CNL's parent company, CNL Hospitality Properties, is an unlisted, triple-net lease REIT what acquires and develops properties that are leased to or managed by nationally recognized hotel operators.
Marriott has disposed of $300 million in real estate assets this year as part of its ongoing initiative to focus its resources on management. "Our long-term business strategy is to manage and franchise properties that are owned by others," a Marriott spokesman tells GlobeSt.com. "We work very closely with owners to provide brand preference that builds strong customer satisfaction.
The strategy harkens back to the early '90s, when Marriott Corp. separated into two separate entities, Marriott International and Host Marriott. "Marriott International manages the hotel properties that you see around the world," the spokesman notes. "That announcement [of the hotel sales] is totally consistent with our strategy; it's a demonstration that it's working."
Host Marriott "owns a number of our properties that we manage and we have a close relationship with Host Marriott, but they are a separately traded, independent company," states the spokesman.
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