WASHINGTON – Jan. 5, 2005 – Marriott International, Inc. (NYSE:MAR) has announced that Grande Lakes Orlando, owned by an affiliate of Thayer Lodging Group, refinanced its original construction financing in late 2004 with Barclay’s Capital. As a result, Marriott International received $95 million in repayment of principal and interest of its mezzanine loan to the venture. Marriott International was also released from a $75 million principal guaranty in connection with the refinance.
Grande Lakes Orlando is located on a 500-acre estate featuring a 584-room Ritz-Carlton and a 1,000-room JW Marriott. Complementing these two grand structures is an 18-hole Greg Norman-designed championship golf course and a 40,000-square-foot spa. The properties are managed under long-term agreements with Marriott International.
David Weymer, Managing Director of Thayer Lodging, said, “Grande Lakes Orlando is our flagship project and this new financing enhances the long term value to our investors. It also validates the value of this world class resort and confirms our vision in purchasing the property in 2001.”
Totaling $400 million, the Barclay’s loan has an outside maturity date of 2010. Thayer Lodging Group is a private owner of 23 hotels based in Annapolis, Maryland.
“This transaction not only reduces the cost of debt for the venture, it also allows Marriott International to recycle substantial capital,” said Arne Sorenson, Marriott International’s Executive Vice President and Chief Financial Officer.
“With the upturn in lodging demand and the seasoning of new hotels, Marriott International is likely to recover other loans and guarantees entered into in prior years. We expect to reinvest the cash in attractive investment opportunities, including share repurchases.”
Pending reinvestment, Marriott International’s 2005 net interest will decline as a result of the Grande Lakes refinancing which should reduce the company’s earnings per share in 2005 by approximately $0.02.
For more information or reservations, please visit our web site at http://www.marriott.com
Source: Marriott International, Inc.
