Plasencia Group Helps Lead Host Marriott Out of the Hospitality Doldrums

BETHESDA, MD-Host Marriott Corp.–the largest lodging REIT in the US–called on The Plasencia Group to advise on its disposition of a handful of hotel properties, and the Tampa, FL-based hotel investment services firm has delivered. TPG helped facilitate the recent sale of Norfolk Waterside Marriott in Norfolk, VA, Palm Beach Garden, FL’s Palm Beach Gardens Marriott, and Oklahoma City, OK’s Waterford Marriott. The three asset sales brought in a total of $71 for Host Marriott; a significant feat given the major hits the hospitality industry has taken in the nearly two years following the September 11 terror attacks.

Norfolk Waterside Marriott, which features 405 guestrooms, is in the heart of the city and sits just 15 minutes from the Norfolk Airport. The property, valued a nearly $30 million, also offers more than 60,000 sf of flexible meeting space spread out among 45 rooms. The 279-room Palm Beach Gardens Marriott recently underwent a renovation and features about 10,000 sf of space. Valued at $16.6 million, the hotel is conveniently located about 10 miles from the West Palm Beach Airport. Last but not least, the 197-room Waterford Marriott in Oklahoma City offers a suburban location only 15 minutes from the heart of downtown. Waterford also features 8,000 sf of meeting and banquet space, and has a current assessed value of $11 million.

Speaking during the company’s second quarter earnings conference call yesterday, Host Marriott executive vice president for acquisitions and development James F. Risoleo says, “We are pleased with the sale of these hotels and are continuing to pursue additional asset sales in conjunction with the company’s strategy of recycling capital by disposing of non-core assets.” TPG, having completed $900 million in transactions over the last 12 months, sees the dispositions as a sign that the market is finally in for a much-needed and highly anticipated rebound. “These transactions are continuing evidence that there is a significant amount of equity available for promising hotel investment opportunities throughout the country,” notes TPG president Lou Plasencia. “We are pleased that these sales, completed after marketing processes that elicited great interest, allowed our clients to achieve important disposition goals.”