Marriott International has sold the London EDITION hotel and also signed agreements to sell two other EDITION hotels for a total price of $815m.
The other two hotels, the Miami Beach EDITION and the New York EDITION, are currently under construction.
As part of the long-term management agreements with the hotel’s new owner, the Abu Dhabi Investment Authority, the hotels will be managed by Marriott.
London EDITION hotel, which started operations in September 2013, has been handed over to its new owner, while the Miami Beach EDITION and the New York EDITION, which are expected to open during the second half of 2014 and the first half of 2015 respectively, will be handed over accordingly.
Under the agreement, the purchase prices for the two hotels are fixed and development costs greater than the agreed purchase price cannot be recovered.
Marriott International president and CEO Arne Sorenson said the sale of the hotels is a powerful endorsement of the EDITION brand.
"This transaction is a key component of our strategy to build the EDITION brand by selectively developing spectacular, brand-defining hotels in gateway cities," Sorenson added.
"We look forward to managing these hotels for many years."
Miami Beach EDITION also has a residential component, which was not included in the sale agreement and Marriott will retain ownership of the residential units.
Additionally, Marriott plans to open new EDITION hotels in Los Angeles; Abu Dhabi; Sanya, China; Gurgaon, India; and Bangkok.
Currently, Marriott International has around 3,900 properties across 72 countries and territories and reported revenues of around $12bn during the fiscal year 2012.
Image: London EDITION. Photo courtesy of Marriott International, Inc.
