a multifaceted transaction the immediate disposition

The transaction lays to rest a 2002 lawsuit CTF filed against Marriott, accusing the company of overcharging for goods and services provided through the Rockville, MD-based online procurement services firm Avendra LLC. "As part of the transaction, we and CTF have agreed to dismiss all litigation currently pending between us, including litigation and arbitration involving CTF and its affiliates," Marriott officials note in the company's first quarter 2005 report.

In the 32-hotel acquisition arrangement with CTF was a provision that allowed Marriott to secure buyers for the properties, 29 of which operate under the Marriott-owned Renaissance Hotels & Resorts and Courtyard by Marriott flags. To that end, Marriott sold eight hotels to Chicago's Walton Street for $578 million, five hotels and a joint venture interest to Sunstone of San Clemente, CA for $419 million, and two properties to Newport Beach, CA-based Tarsadia; the Tarsadia agreement was not part of the original announcement made two months ago.

Additionally, deals involving the sale of five other hotels and the remaining joint venture interest, for a combined $52 million, are currently awaiting finalization. Walton Street and Tarsadia were unavailable for comment by deadline. The three simultaneous dispositions and the pending five-property sale left Marriott with a $374-million bill for the immediate purchase of the remaining 12 hotels, which are currently being shopped around. Despite letting go of the bulk of what it just acquired from CTF, Marriott will continue an association with the properties by serving as manager under long- and short-term franchise contracts.