Host Marriott Sells Two Hotels for $586M

BETHESDA, MD-Host Marriott Corp. has sold the Fort Lauderdale Marina Marriott hotel and reached a definitive agreement to sell the Swissotel the Drake, New York for an aggregate of approximately $586 million. The sale of the Fort Lauderdale site has closed and the Drake sale is expected to close in March.

Information on the buyers was not released. The firm expects proceeds to be used to partially fund its pending purchase of a portfolio of 38 hotels from Starwood Hotels & Resorts Worldwide Inc. Last year, Host Marriott entered into an agreement to purchase the sites in a cash and stock deal valued at approximately more than $4 billion. The sale includes 25 domestic and 13 international hotel properties aggregating a total of 18,964 rooms under the Westin, Sheraton, W Hotels, the Luxury Collection and St. Regis flags.

The 579-room Fort Lauderdale Marina is a 25-year-old property that consists of a 273-room main tower and two low-rise wings. The company says it sustained significant property damage and business interruption from Hurricane Wilma and currently is operating without the use of its main tower. Host expects to receive future insurance proceeds associated with these events–which could be meaningful–and will retain those proceeds under the terms of the sale.