Tax Break Facilitates Purchase of New Marriott Residence Inn

BALTIMORE-The Marriott Residence Inn Downtown/Inner Harbor, which opened its doors just last month, will soon be sold now that the Baltimore City Board of Estimates has authorized the redistribution of what remains of a $3-million tax break package to the proposed buyer. Bethesda-headquartered RLJ Urban Lodging Fund Acquisitions LLC will acquire the 188-suite hotel from developer and owner Urgo Hotels, also based in Bethesda.

The purchase price has not been disclosed; however, Urgo developed the hotel for approximately $28 million, according to a Winter 2004 report published by the city’s economic development entity the Baltimore Development Corp. Three years ago the Board of Estimates originally signed off on the tax package–a tax break arrangement in the form a 10-year payment in lieu of taxes, or Pilot agreement–which allowed Urgo to build the hotel. The move had faced opposition from preservationists against the demolition of an and eight-decade-old office building that was on the site.