Marriott International Inc. (MAR:US), the largest publicly traded U.S. hotel chain, agreed to sell its ExecuStay corporate and temporary housing division to Oakwood Worldwide for an undisclosed price.
ExecuStay, which offers furnished units to customers who are usually seeking lodging for 30 or more days, has more than 700 locations nationwide, Bethesda, Maryland-based Marriott said in a statement today. As part of the agreement with closely held Oakwood, Marriott will refer customers looking for corporate housing to the Los Angeles-based company for an eight-year period, and ExecuStay customers will continue to earn points under the Marriott Rewards program.
Marriott, which purchased ExecuStay in 1999, is shedding operations that aren’t focused on hotels. In November, it completed the spinoff of its timeshare business, which accounted for about 13 percent of the company’s total revenue. ExecuStay properties include such amenities as full kitchens and laundry facilities.
The division’s focus on apartment-style units “was meaningfully different from Marriott International (MAR:US)’s long-term business strategy,” David Grissen, president of the Americas for Marriott, said in the statement.
The sale is “not material” to Marriott’s finances, the hotelier said.
To contact the reporter on this story: Nadja Brandt in Los Angeles at firstname.lastname@example.org
To contact the editor responsible for this story: Kara Wetzel at email@example.com