Summary
Marriott International, Inc. (MAR) has announced the sale of the Sheraton Phoenix Downtown hotel for $268 million to an affiliate of The Blackstone Group. This transaction is part of Marriott's strategic initiative to revitalize the Sheraton brand. Marriott acquired the hotel in 2018 and has since undertaken a significant renovation to align it with the new brand vision. The sale proceeds will likely contribute positively to Marriott's liquidity and capital structure.
Key Highlights
- 1Marriott sold the Sheraton Phoenix Downtown hotel for $268 million.
- 2The buyer is an affiliate of The Blackstone Group Inc.
- 3Marriott will continue to operate the hotel under a long-term management agreement.
- 4The sale aligns with Marriott's strategy to reinvent the Sheraton brand.
- 5The hotel underwent a transformational renovation initiated in 2018.
- 6The renovation is expected to be completed in the first half of 2020.
- 7The hotel features 1,003 guest rooms and approximately 77,000 square feet of meeting space.
Frequently Asked Questions
The sale generated $268 million in proceeds, which will enhance Marriott's liquidity and balance sheet. While the specific accounting impact isn't detailed, the sale of owned real estate is a component of Marriott's asset-light strategy.
This sale is part of Marriott's strategic plan to 'reinvent the Sheraton brand.' By selling the owned asset while retaining management, Marriott can focus on brand transformation and potentially reduce its capital-intensive real estate holdings.
Yes, Marriott will continue to operate the hotel under a long-term management agreement with the new owner, Blackstone.
The comprehensive renovation, which began after Marriott acquired the hotel in 2018, is on track to be completed in the first half of 2020.