The Atlanta Marriott Marquis in downtown Atlanta, GA, changed hands for $293 million or $176,000 per key. Host Hotels & Resorts LP (NYSE:HST
) traded the 1,663-room asset to an undisclosed buyer.
The 479,002-square-foot, 50-story hospitality building at 265 Peachtree Center Ave. NE was built in 1985 and is one of the largest convention center hotels in the country. Marriott International Inc. manages the property under a long-term agreement.
Gregory J. Larson, Host executive vice president of corporate strategy, said the sale was made as part of the firm's asset sale strategy. "In the past 12 months, we have sold four hotels for approximately $450 million. This sale meaningfully reduces our overall market presence in Atlanta, which now represents approximately 3 percent of our total revenues," noted Larson.
Host Hotels is a lodging real estate investment trust and one of the largest owners of luxury hotels with 103 properties in the United States and 15 properties worldwide totaling more than 62,300 rooms. The REIT partners with premium brands such as Marriott, Ritz-Carlton, Westin, Sheraton, W and St. Regis.
Atlanta-based Managing Director Robert Webster and Senior Vice President Tim Southard of Jones Lang LaSalle’s Hotels & Hospitality Group led the JLL team in marketing the property on behalf of the seller.
"The Atlanta hotel market is rebounding steadily as group and transient travel continues to improve. The market, which consistently ranks among the top five convention markets in the United States, generated an impressive RevPAR increase of 6.0 percent through 11 months ending November 2012," Webster said. "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. 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 gravitate toward higher yields that the core secondary markets deliver."
See CoStar COMPS #2649644 for more information.