Marriott executive vice president and CFO Arne M. Sorenson says the deal "meaningfully benefits our return on invested capital moving forward and aligns well with our strategy of creating value through managing hotels rather than owning real estate." Marriott will incur a $17-million, one-time pre-tax gain for 2005. And while the loss of rent will lead to a $20.7-million reduction in operating income, interest expense savings and equity earnings totaling $18.1 million will nearly balance out the losses.

The Courtyard by Marriott JV--also majority-owned by Sarofim, with Marriott and Host Marriott as partners--will continue leasing the land underneath all 84 hotels. Sarofim acquired a 75% stake in the 120-property Courtyard JV from equal partners Marriott and Host Marriott last year; the deal left Marriott with a 21% interest in the JV and Host Marriott with a 4% interest.