NEW YORK and BETHESDA, Md., Jan. 15,
2014 /PRNewswire/ -- Marriott International, Inc.
(NASDAQ: MAR) together with Ian
Schrager and The Witkoff Group, Winthrop Realty Trust (NYSE:
FUR), New Valley LLC and Maefield Development today announced plans
for a second EDITION hotel in New York
City. Scheduled to open in 2017 and located in the heart of
Times Square, the new hotel will follow the expected 2015 debut of
Manhattan's first EDITION property
located in the landmark Clock Tower building at 5 Madison Avenue.
EDITION is a first class, full service, luxury lifestyle brand
within the Marriott International portfolio, conceived in
collaboration with legendary hotelier Ian
Schrager. Marriott International will manage the hotel
under a long-term agreement.
(Photo: http://photos.prnewswire.com/prnh/20140115/PH47035 )
Located at 701 Seventh Avenue, this will be the first hotel of
this scale to be built in Times Square in over two decades. The
world-class hotel design will feature floor to ceiling windows with
unobstructed views of Manhattan in
seventy percent of the property's 452 guest rooms. The Times Square
EDITION will be one component of a mixed use development which will
feature 100,000 square feet of flagship retail, dining,
entertainment and event space, as well an 18,000 square foot HD LED
sign – one of the largest in the world. In keeping with the
identity of EDITION, Mr. Schrager will lead all creative design and
positioning for the hotel, as well as the entertainment programming
offered within the property.
"New York is one of the most
important destinations in the world, and we are delighted to have
secured yet another iconic Manhattan location for our second EDITION
hotel in the city," said Arne
Sorenson, Marriott's president and chief executive
officer. "Following the hugely successful opening of The
London EDITION last year, we couldn't be more excited about the
potential for this brand," said Mr. Sorenson. "The Witkoff Group is
an ideal partner for a project of this magnitude and we are
thrilled to be working together," said Mr.
Sorenson.
"We are excited to team up with Marriott International,
Ian Schrager and our partners to
complete the most significant new development in Times Square in a
number of years," stated Steven
Witkoff, Chairman and CEO of The Witkoff Group. "In addition
to introducing the extraordinary EDITION brand to Midtown, the
project will feature a significant amount of prime retail space in
one of the world's most trafficked and successful shopping
districts."
"We are honored to be working with such extraordinary partners
in creating a world-class, transformative project in Times Square,"
stated Mark Siffin, CEO of Maefield
Development. "It is a remarkable vision that could only be
realized through the many talents and capabilities of Marriott, Ian
Schrager Company, The Witkoff Group, and our entire JV team."
Starwood Property Trust, Inc. and iStar Financial Inc. provided
to the ownership group an $815 million construction loan for
the mixed use project which includes the hotel and retail
space. In addition, Starwood Property
Trust, Inc. and Starwood Capital Group Global, LLC
and its affiliates have an equity interest in the transaction. As
additional collateral for the loan, Marriott International has
agreed to provide the lenders with the right (upon an uncured event
of default under the loan agreement) to require Marriott to
purchase the hotel component of the property during the first two
years after opening for $314.6
million (i.e., $696,000 per
room).
Mark Elliott of Hodges Ward Elliott acted as a hotel advisor to
The Witkoff Group and partners.
Most recently, The London EDITION opened to rave reviews and
this month was awarded "Best Hotel, 100 or More Rooms" by Travel +
Leisure as part of the magazine's annual design awards. The modern
and luxurious hotel opened this past September in the historic
building formerly known as the Berners Hotel, located in the city's
Fitzrovia neighborhood. Future EDITION hotels are planned for
Miami Beach (2014), New York City (2015), Abu Dhabi (2015), Gurgaon, India (2015), Sanya, China (2015), Bangkok (2016) and West Hollywood (2017).
Note on forward-looking statements: This press release
contains "forward-looking statements" within the meaning of U.S.
federal securities laws, including the parties' plans for signing
and closing on definitive transaction documents; the opening dates
and locations for future EDITION hotels; and similar statements
concerning anticipated future events and expectations that are not
historical facts. We caution you that these statements are not
guarantees of future performance and are subject to numerous risks
and uncertainties, including the ability of the parties to agree on
definitive transaction documents, the receipt of necessary
consents, and other risk factors that we identify in our most
recent quarterly report on Form 10-Q. Any of these factors
could cause actual results to differ materially from the
expectations we express or imply in this press release. We make
these forward-looking statements as of the date of this press
release. We undertake no obligation to publicly update or revise
any forward-looking statement, whether as a result of new
information, future events or otherwise.
Visit Marriott International, Inc. (NASDAQ: MAR) for company
information. For more information or reservations, please visit our
web site at www.marriott.com, and for the latest company news,
visit www.marriottnewscenter.com.
About The Witkoff Group: The Witkoff Group is a leading
real estate investment, operating and full-service development firm
headquartered in New York City.
Since its founding by Steven Witkoff
in 1997, The Witkoff Group has taken a hands-on, operational
approach to all of its projects, with in-house teams focused on
acquisitions, asset and property management, development and
construction. This structure, along with the company's proven track
record, enables The Witkoff Group to successfully execute complex
real estate transactions and development projects. Over the past 15
years, The Witkoff Group has acquired more than 60 properties,
consisting of approximately 18 million square feet, in major
central business districts throughout the
United States and London.
These properties include office buildings, hotels and over 12,000
residential units, representing a total cost of approximately
$7 billion.
IRPR#1
SOURCE Marriott International, Inc.