Marriott International Sells its Corporate Apartment Housing
- Apr 30, 2012
By Jeffrey Steele, Contributing Writer
Raleigh, N.C.—Marriott International, Inc., is selling its ExecuStay corporate and temporary apartment housing business to Oakwood Worldwide, the two companies announced in mid-April. The latter is the leading corporate housing and serviced apartments provider, with locations in more than 50 counties. The transaction calls for Oakwood to maintain ExecuStay as a separate brand offering.
ExecuStay furnished apartments, found in more than 700 U.S. locations, offer a full residential experience, providing furnishings and utilities, as well as conveniences like Wi-Fi, full kitchen and laundry facilities.
Under terms of the transaction, Marriott and Oakwood signed an eight-year reciprocal preferred provider agreement, calling for Marriott to become the preferred hotel provider for Oakwood corporate housing and serviced apartment patrons needing hotel stays. Marriott will recognize Oakwood as the preferred provider of corporate housing and serviced apartments to Marriott customers.
In addition, ExecuStay customers will continue to earn Marriott Rewards guest loyalty program points for stays at ExecuStay apartments.
There’s little mystery as to why Oakwood Worldwide was attracted to the transaction. Oakwood chief financial officer Bill Foltz tells MHN. “They’re in corporate housing like we are. The cultures are similar, the business plans are similar, and in addition we have this preferred provider agreement with Marriott, so we’ll be able to continue to run ExecuStay units and Oakwood units, and clients who stay at ExecuStay will continue to receive Marriott Rewards points. It’s just a great combination.”
The transaction should generate significant synergies, Foltz adds. “From Oakwood’s standpoint, the benefits of retaining a relationship with Marriott are enormous,” he says.
ExecuStay, in turn, should benefit from the depth and expertise of Oakwood’s sales and marketing staff, the largest in the industry.
“We’ll be able to accelerate the growth of ExecuStay,” Foltz says.
Representing Marriott International, David Grissen, president – The Americas, reported his company is proud of ExecuStay, and was delighted to reach the agreement with Oakwood. “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 franchised partners.”
Noting that Oakwood has been interested in ExecuStay for some time, Oakwood Worldwide chairman and founder Howard Ruby noted: “This is a great day for both Oakwood and ExecuStay. 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.”
Recognizing the extensive level of cooperation witnessed throughout the sale process, the post-sale process and the integration, Foltz says, “It’s been a pleasure to work with Marriott. We’re both excited about the future.”