On Monday Marriott International signed an agreement to sell ExecuStay, its corporate and temporary apartment housing business to Oakwood Worldwide.
The financial terms of the sale were not disclosed and the transaction’s conclusion is expected by the end of April.
“We have been interested in ExecuStay for some time, and Marriott has developed a brand that is a leader in the corporate housing and serviced apartment space. In addition, our long-term preferred partnership with Marriott will benefit both companies and our respective clients,” said Howard Ruby, chairman and founder of Oakwood Worldwide.
As part of the transaction, the privately held Oakwood Worldwide, Los Angeles, will maintain ExecuStay as a separate brand offering. The parties also signed an eight-year reciprocal preferred provider agreement under which Marriott International, Bethesda, Maryland, will become the preferred hotel provider for Oakwood corporate housing and serviced apartment customers who need a hotel stay, and Marriott will recognize Oakwood as the preferred provider of corporate housing and serviced apartments to Marriott customers. As part of the preferred provider agreement, ExecuStay customers will also continue to earn Marriott Rewards guest loyalty program points for stays at ExecuStay apartments.
ExecuStay offers furnished apartments in about 700 locations across the U.S., typically accommodating stays of 30 days or longer.