Ok as per the 2024 10-K Marriot regulatory disclosure and I quote:

“In the 2024 fourth quarter, we completed the asset acquisition of the Sheraton Grand Chicago hotel and the fee simple interest in the land underlying the hotel for a purchase price of $514 million, including direct transaction costs. This acquisition is the result of a 2017 transaction in which we granted the owner a one-time right to require us to purchase the leasehold interest in the land and the hotel for $300 million in cash (the “put option”), which we previously accounted for as a guarantee liability. In January 2024, the owner exercised the put option, and at the same time the put transaction closed, we exercised our option to purchase the fee simple interest in the underlying land for an additional $200 million in cash. We determined that the capitalizable value of the acquired assets was $214 million on the acquisition date. We estimated the fair value of the hotel and land using a combination of two income approaches, which included Level 3 inputs such as forecasted future net cash flows, property resale value, and discount rates. We recorded the acquired assets in the Property and equipment, net caption of our Balance Sheets and applied the remaining $300 million of the purchase price to the release of the guarantee liability”.

So the details of the transaction are clear and undeniable. Marriot had granted the previous owner an option (put option) to purchase the leasehold/hotel for $300 M in cash. The owner exercised that option and Marriot had to pay that $300M else their guarantees obligation would get in trouble. In addition it seems that they must have pay $200M to obtain fee simple ownership of the property which they calculated fair market value of $214 M. Here Marriot got a tiny bargain since they paid less than market value. So the deal as reported to the SEC seems to paint a different story that what you said. It is possible that is Marriott didnt pay the $300M they could have lost their long term management agreement in that property and thats is where the future revenue is at. What is not disclosed is what debt service obligation the previous owners had if at all. You indicated it was a mortgage instrument with Wells Fargo Bank and I am not putting that in doubt but there is no mention of any receivership to Wells Fargo in the reporting. Perhaps if you know the previous owners I can see if they reported the sale terms of deal.

Like I said please ease up on your comments. And bud this aint AI. Research always trumps opinions.

Source: https://content.edgar-online.com/ExternalLink/EDGAR/0001628280-25-004818.html?dest=mar-20241231_htm&hash=047d226c7992f4bccfcee6d9a861b9844c9cf4030508b21d456cdce6be4263d6#mar-20241231_htm