Bethesda Marriott

In December 2004, a joint venture of Northview Hotel Group and a fund managed by Westbrook Partners, acquired the leasehold interest in the Bethesda Marriott Hotel from Host Marriott.  The AAA Four Diamond and Mobile Four Star Hotel comprises 407-keys, 27 meeting rooms with a total of 19,000 sf, indoor and outdoor swimming pools and a newly created restaurant and bar, AGIO.  The Hotel is operated by Marriott International under a long term management agreement. Debt financing for the hotel was provided originally by Morgan Stanley Mortgage Capital, and subsequently (following a refinance in 2006), Barclays Capital.

From 2005 to 2006, Northview oversaw a $13.5mm renovation of the hotel’s guest rooms and HVAC systems along with a complete renovation of the hotel’s public space and plant upgrade.

In June 2005, the venture was successful in acquiring the fee simple interest to the property, and Northview negotiated a revision to the existing management contract with Marriott International, creating a condominium structure that divided the property into two separate parcels.  The hotel remained on one parcel and the second parcel will be developed as condominium units, with approximately 400,000 sf of buildable area.  During this time Northview oversaw the refinancing of the hotel’s debt with Barclays Capital, recouping 135% of the initial invested capital for the venture partners.

In August 2007, the Hotel was sold, with the venture retaining ownership of the adjacent land parcel, which is being developed in conjunction with Quadrangle Development Corporation.

In September 2013, Northview bought back the Hotel at a compelling basis in a direct transaction with the owner and leveraged its relationship with Marriott to negotiate a favorable management agreement. Northview plans to reposition the asset with a $15mm+ strategic renovation and focused asset management.