Marriott Waves Goodbye to Senior Living with $400M in its Pocket

WASHINGTON-DC-In a multi-faceted transaction involving two senior residential property owners and operators, Marriott International Inc. officially makes its exit from the senior-property business with the finalization of the sale of Marriott Senior Services Inc.’s senior communities, as well as all of the management subsidiary’s outstanding stock. This final deal adds $255 million to Marriott’s stash of cash. Also, as part of the transaction, Sunrise committed to taking on an additional $61 million in associated Marriott liabilities and obligations.

Late last year, Marriott announced it would sell off its senior-living business to McLean, VA-headquartered Sunrise Assisted Living Inc. for $89 million. That sale was contingent upon the disposition of Marriott’s nine remaining senior-living communities in a corresponding $166-million deal with Orlando-FL-based CNL Retirement Properties Inc.

“After a careful process of evaluating the senior-living marketplace and alternatives for our senior-living business, we are confident that taking the steps announced will strengthen our focus on the company’s core lodging business, improve return on invested capital and drive shareholder value,” Marriott International chairman and CEO JW Marriott Jr. explained in a December statement.