Marriott falls behind on payments for 122 hotels, property owner says

[MULTIZ321]

Marriott falls behind on payments for 122 hotels, property owner says

Marriott falls behind on payments for 122 hotels, property owner says

The owner of more than 100 Marriott hotel properties is threatening to terminate its agreement with the chain and re-brand the properties with another company due to a payment shortfall.

www.foxbusiness.com

Richard

 

[bazzap]

Marriott falls behind on payments for 122 hotels, property owner says

Marriott falls behind on payments for 122 hotels, property owner says

The owner of more than 100 Marriott hotel properties is threatening to terminate its agreement with the chain and re-brand the properties with another company due to a payment shortfall.

www.foxbusiness.com

Richard

I read earlier that the same hotel owner had already had a very similar case with 100+ IHG hotels.

 

[pedro47]

Are Marriott's hotels in trouble; that is the question? IMO.

 

[bogey21]

Are Marriott's hotels in trouble; that is the question? IMO.

Marriott is OK. I think they are just making a cut throat business decision. Kind of like when they make changes to their TimeShare programs...

George

 

[LUVourMarriotts]

Are Marriott's hotels in trouble; that is the question? IMO.

I was asking my buddy about this, who is a VP for a hotel management company. He said, most likely, Service Properties Trust, the company in the article, is having Marriott directly manage these 122 hotels. And, in their contract with Marriott, SPT has a guaranteed ROI. So, Marriott is pretty much guaranteeing to SPT that the hotels will have a steady enough occupancy rate to guarantee a specific monthly or yearly return. From what I was told, most management companies do not do this, but Marriott does it to keep the properties within the Marriott brand, and usually it is not an issue. Obviously COVID-19 impacted occupancy, so Marriott has to pony up the money for that guarantee. Again, this is what he believes is happening, based on his experience.

 

[kckaren21]

Would this affect the Marriott timeshares? I suppose not, if the timeshares are deeded, which I don't know.
Marriott is a pretty strong company financially, I think. (I used to be Asst Controller for one of their hotels and followed the stock for years though not lately.)