by Michael J. Shapiro | January 08, 2014
Marriott International has agreed to sell three Edition hotels to companies owned by the Abu Dhabi Investment Authority. The London Edition already has been sold, and binding agreements have been signed for the properties in Miami Beach and New York City's Manhattan, which are currently in development. The total purchase price for the three hotels is approximately US$815 million. Marriott will operate all three properties under long-term management contracts. The Miami Beach Edition, slated to open in the second half of this year, and the New York Edition, projected to debut in the first half of 2015, should each be conveyed to its new owner when construction is completed. The purchase prices are fixed and based on projected development costs. "This transaction is a key component of our strategy to build the Edition brand by selectively developing spectacular, brand-defining hotels in gateway cities," said Marriott president and CEO Arne Sorenson. "We look forward to managing these hotels for many years." The residential component of the Miami Beach Edition is not part of the sale.