Marriott Downtown is sold to invest firm

Host Marriott Corp. has sold the Salt Lake City Marriott Downtown, 75 S. West Temple, for $49.5 million.

But the buyer, a Bethesda-based real estate investment company called DiamondRock Hospitality Co., said the 521-room hotel will continue to be managed by Marriott and that the transition should be largely transparent to hotel guests.

Host Marriott, a real estate investment trust, said Friday that it sold six hotels — including the Salt Lake property — in three separate agreements, which closed late last month and earlier this month. In addition to the Salt Lake facility, Host Marriott said the sales included the Bethesda Marriott, Hartford (Conn.) Marriott Farmington, Tampa (Fla.) Marriott Westshore, Albuquerque Marriott and Torrance Marriott in Los Angeles.

In total, the deals were worth about $223 million, Host Marriott said. Host Marriott did not immediately respond to requests for information. In its statement, Host Marriott said the proceeds will be "reinvested in the purchase of upper-upscale or luxury hotels consistent with the company's target profile, return on investment projects, repayment of debt obligations or other corporate purposes."

Bob O'Neill, marketing director for the Marriott Downtown, said layoffs or other staff changes are not expected.

"We expect virtually no changes," O'Neill said. "As far as the consumer, or the hotel staff for that matter, we expect really no change."

The Marriott Downtown already has a "great rapport" with DiamondRock, O'Neill said.

"I think they see the value in this property," he said. "We understand, and hope and expect that they'll continue to invest in the property to stay current, as our former owners had.

"DiamondRock is excited about having an ownership stake here in Salt Lake and about the prospect for increased business. I think they feel like Salt Lake has been in a down cycle and that it's coming out of it. They see a real up side to the market, and we're starting to see signs of it, too."

Mark Brugger, spokesman for DiamondRock, said Salt Lake City "has many positive things happening" and that DiamondRock expected its acquisition would be "attractive for our shareholders."