Host Hotels & Resorts announced on Thursday that it closed the sale of the 1,663-room Atlanta Marriott Marquis for US$293 million on January 11.
Host Hotels & Resorts, Bethesda, Maryland, told HOTELS it was requested not to disclose the buyer of the hotel, but said it was a large, privately held international company. Marriott International, Bethesda, Maryland, currently manages the hotel and confirmed to HOTELS that it will continue to.
“This sale meaningfully reduces our overall market presence in Atlanta, which now represents approximately 3% of our total revenues,” said Gregory Larson, executive vice president, corporate strategy at Host.
The hotel’s lobby was renovated in 2008, and Host said it is due for a guestrooms renovation in 2014. However, this will now be up to the new owner. Host acquired full ownership of the property in 1998 for approximately US$239 million and completed a US$140 million renovation in 2008.
“Though the asset is the submarket leader in Atlanta, its RevPAR is below US$100 and management expects the asset to require approximately US$20 million in rooms renovations over the next three years,” David Loeb, an analyst with R.W. Baird & Co. wrote in a note to investors.