ExecuStay by Marriott Acquires Executive Living in California; Doubles Bay-Area Inventory to 1,500 Corporate Apartments
WASHINGTON, Sept. 8 / ExecuStay by Marriott, the corporate housing solutions business of Marriott International, Inc. MAR, announced today that it has acquired Executive Living of Stockton, California. The acquisition, which doubles ExecuStay's Bay Area corporate apartment inventory to approximately 1,500 units, brings the company's total inventory to more than 6,500 units nationwide.
Gary Abrahams, president and chief executive officer of ExecuStay, said, " The acquisition of Executive Living gives us an even stronger platform for servicing one of the most thriving corporate housing markets in the country. This acquisition is an integral part of our continuing strategy to provide high-quality apartments in high-demand markets."
Since becoming part of Marriott International in March 1999, ExecuStay has acquired the 300-unit, Columbus, Ohio-based Executive Living, Inc. (not a related company); acquired the corporate housing division of Dallas-based JPI; and signed a long-term lease agreement with Pine Equity N.Y., Inc. The 250-unit Pine Equity agreement doubles ExecuStay's New York City inventory.
The acquisition of ExecuStay earlier this year made Marriott International the first hospitality company to enter the estimated $3 billion corporate housing industry.
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On July 1, ExecuStay joined the award-winning Marriott Rewards(R) frequent traveler program, making it the only corporate housing business to offer points and miles that can be redeemed for free travel and vacations. At ExecuStay, Marriott Rewards members earn 2.5 points for every dollar charged to their stay (excluding tax). Based on an average rate of $2,400 per month, a 90-day stay earns a Marriott Rewards member approximately 18,000 points redeemable for free travel at over 1,650 participating Marriott hotels and resorts worldwide.
Marriott is also the leader in the extended-stay lodging segment offering the following premium brands: Residence Inn by Marriott, TownePlace Suites by Marriott and Marriott Executive Apartments.
Executive Living, which spun off in 1994 from Stockton, California-based Grupe Management Co. -- a real estate development company specializing in apartment communities, master-planned communities and homebuilding -- is one of the Bay Area's top providers of corporate apartments. Owner and President Kevin Huber, who also serves as president of Grupe Management Co., will become part of ExecuStay's senior management organization. His 35-person staff will also fold into ExecuStay by Marriott.
MARRIOTT INTERNATIONAL, INC. is a leading worldwide hospitality company with over 1,900 operating units in the United States and 55 other countries and territories. Marriott Lodging operates and franchises hotels under the Marriott, Ritz-Carlton, Renaissance, Residence Inn, Courtyard, TownePlace Suites, Fairfield Inn, SpringHill Suites and Ramada International brand names; develops and operates vacation ownership (timeshare) resorts under the Marriott and Horizons brands, and provides furnished corporate housing through its ExecuStay by Marriott division. Other Marriott businesses include senior living communities and services, wholesale food distribution, and procurement services. The company is headquartered in Washington, D.C. and has approximately 140,000 employees. In fiscal year 1998, Marriott International reported total sales of $8.0 billion.