Edition hotels Marriott invested in poised to be sold to Abu Dhabi government15 Aug, 2013 By: David Eisen
|A Terrace Loft room at Istanbul Edition.|
The Abu Dhabi government is closing in on a deal to buy three Marriott International Edition hotels that are currently under development in London, Miami and New York, The Wall Street Journal reports.
A deal isn't final, people close to it tell The Journal, but if it closes, it could prompt a positive buzz that may convince other hotel owners to fly the Edition flag, analysts say.
After an Edition hotel in Istanbul, and one in Waikiki that ended with Marriott losing the management contract on it, Marriott announced in late 2011 that it would bankroll future development of the brand to the tune of some $800 million.
However, in April 2012, Marriott said it was considering selling the three hotels under development to spur global expansion. "We already have interested buyers," Sorenson told Bloomberg back then.
The plan was to have six Edition hotels by 2015, with properties in Abu Dhabi, Bangkok and Gurgaon, India, and, perhaps, one in West Hollywood, Calif.
R.W. Baird hotel analyst David Loeb told The Wall Sreet Journal that he estimates Marriott has already spent around $575 million to acquire, convert and upgrade the three properties. A sale to the Abu Dhabi Investment Authority, or ADIA, is expected to bring a profit for Marriott.
Jim Butler, chairman of the global hospitality group for the law firm Jeffer, Mangels, Butler & Mitchell. Still, told The Wall Street Journal that the brand will languish unless they attain critical mass.
The London property is exepcted to open in September, while the New York hotel, a conversion of the former MetLife Inc. office tower, should open in 2015. The Miami Beach hotel will open next year.
Edition was launched in 2008 as a partnership between Marriott and Ian Schrager.
Topic : Edition Hotels
External Source : The Wall Street Journal
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