|Oakwood buys Marriott's ExecuStay.|
Wednesday, 18th April 2012
Source : Marriott International
Marriott and Oakwood Worldwide have signed an agreement for Marriott to sell its ExecuStay corporate and temporary apartment housing business to Oakwood, which is a global provider of corporate housing and serviced apartments, with locations in more than 50 countries.
ExecuStay offers furnished apartments in more than 700 locations across the U.S. Typically accommodating stays of 30 days or longer, ExecuStay provides a full residential experience, taking care of everything from utilities to furnishings, with conveniences such as free Wi-Fi, a full kitchen and laundry facilities.
As part of the transaction Oakwood will maintain ExecuStay as a separate brand offering. The parties also signed an eight-year reciprocal preferred provider agreement under which Marriott International will become the preferred hotel provider for Oakwood corporate housing and serviced apartment customers who need a hotel stay, and Marriott will recognize Oakwood as the preferred provider of corporate housing and serviced apartments to Marriott customers. As part of the preferred provider agreement, ExecuStay customers will also continue to earn Marriott Rewards guest loyalty program points for stays at ExecuStay apartments.
David Grissen, president – The Americas for Marriott International, said, “We are delighted to reach this agreement with Oakwood, the world’s premier corporate housing and serviced apartments provider. We believe this agreement, which includes a significant continuing relationship, will substantially benefit each of our two companies as well as our respective customer bases, and is the best of both worlds for the ExecuStay brand and its franchise partners.”
Grissen continued, “We are proud of ExecuStay. Since we acquired the business in 1999, the brand has evolved into an industry leader offering a tremendous product to customers.
Notwithstanding this progress, over time it became clear that ExecuStay’s business model of leasing residential premises to customers was meaningfully different from Marriott International’s long-term business strategy. ExecuStay’s association with Oakwood will provide it with new opportunities to prosper.”
“This is a great day for both Oakwood and ExecuStay,” said Howard Ruby, chairman and founder of Oakwood Worldwide. “We have been interested in ExecuStay for some time, and Marriott has developed a brand that is a leader in the corporate housing and serviced apartment space. In addition, our long-term preferred partnership with Marriott will benefit both companies and our respective clients.”
“This acquisition will expand our footprint and we’ll be even better-equipped to provide our customers with innovative solutions that best fit their changing needs,” said Ric Villarreal, president of Oakwood Worldwide. “We will leverage the same best practices that have made Oakwood and ExecuStay industry leaders as we move our organization forward.”
The financial terms of the sale were not disclosed, and are not material to Marriott International. Conclusion of the transaction, which is subject to normal and customary closing conditions, is expected by the end of April.