Marriott International, Inc. (NYSE: MAR) announced today that they intend to sell ExecuStay corporate and temporary apartment housing business to privately-held Oakwood World, a company which provides corporate housing and apartments in over 50 countries at various locations.
The two companies will also enter a reciprocal preferred provider agreement.
Within the United States, ExecuStay provides more than 700 furnishes apartments and visitors generally reside within them for at least 30 days.
Here’s what David Grissen, President of Americas’ 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.”
MAR closed at $37.31 per share.
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