Marriott International said it would sell to corporate housing
provider Oakwood Worldwide its ExecuStay housing business, which has more than
700 locations across the United States.
Under the terms of the agreement, expected to close by the
end of the month, Oakwood will maintain ExecuStay as a separate brand. The two
companies also signed an eight-year preferred provider agreement, in which
Marriott will serve as the preferred hotel provider for Oakwood guests and vice
versa. ExecuStay guests also will continue to accrue Marriott Rewards points.
Financial terms of the agreement were not disclosed.
Marriott acquired the ExecuStay business in 1999. David
Grissen, Marriott's president for the Americas, said in a statement that “ExecuStay's
business model of leasing residential premises to customers was meaningfully
different from Marriott International's long-term business strategy." The
deal does not affect Marriott Executive Apartments, which are a separate brand
of corporate apartments.
Oakwood reports its worldwide inventory as about 25,000
apartments.