Marriott International, Inc. has recently entered into a non-binding letter of intent for the sale of three EDITION hotels subject to long-term management agreements. The three hotels (located in London, Miami Beach, and Manhattan) are currently owned by Marriott and are under construction. The residential component of the Miami Beach EDITION would not be included in this transaction. The company would retain ownership of the Miami Beach EDITION residential units pending their sale to individual purchasers.
The letter of intent contemplates a fixed sales price of approximately $800 million for the three hotels; this price is approximately equal to Marriott’s expected total acquisition and development cost. Increases in estimated development costs would not result in higher hotel sales prices.
If the transaction goes forward, the company expects each hotel sale would occur after construction is complete, with the company retaining long-term management agreements. The company anticipates completing construction of the London EDITION within the next thirty days, the Miami Beach EDITION in the second half of 2014, and the New York EDITION in early 2015.
The company does not anticipate making any further public announcements about this transaction prior to the execution of binding legal agreements. The company can make no assurance that the transactions contemplated in the non-binding letter of intent will be completed on the current terms or at all, or that construction of the hotels will be completed when anticipated.