In the past 12 months, Host Hotels & Resorts has sold four hotels for approximately $450 million.
“I am excited to report our continued success in executing our asset sale strategy,” said Gregory J. Larson, Host Hotels & Resorts’ executive vice president, corporate strategy. “This sale meaningfully reduces our overall market presence in Atlanta, which now represents approximately three percent of our total revenues.”
Jones Lang LaSalle’s Hotels & Hospitality Group represented the seller in the transaction.
“The Atlanta hotel market, which benefits from a large convention center, is rebounding steadily as group and transient travel continues to improve,” said Robert Webster, JLL’s managing director. “While outside of the typical primary core market investment standards, Atlanta will continue to attract investor interest at a greater pace during the next several years as hotel investors continue to gravitate toward higher yields that the core secondary markets deliver.”
Located at 265 Peachtree Center Ave. NE in Atlanta, the Atlanta Marriott Marquis is 52 stories, making it the 14th tallest skyscraper in the city. It offers 160,000 square feet of contiguous meeting space, 84 meeting rooms, 1,569 contemporary guest rooms and 94 spacious suites featuring floor-to-ceiling windows and incredible skyline views.
The hotel, built by Atlanta architect John Portman, was completed in 1985 and is one of the nation’s premier convention hotels catering to thousands of travelers annually.
The Atlanta hotel market consistently ranks among the top five convention markets in the United States, generating an impressive RevPAR increase of 6.0 percent through 11 months ending November 2012.
“We’re finally seeing core secondary markets making their way onto investor’s radars, as demonstrated by this transaction and six other Atlanta hotel sales and financings that our team worked on in the last 12 months,” Webster added.
The hotel is subject to a long-term management agreement with Marriott International, Inc.
The proceeds of the sale will be used to fund future acquisitions, pay down debt or for general corporate purposes.
JLL’s senior vice president Tim Southard was also instrumental on the transaction.