
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, January 28, 1994                   TAG: 9401280137
SECTION: BUSINESS                    PAGE: B-4   EDITION: METRO 
SOURCE: MAG POFF STAFF WRITER
DATELINE:                                 LENGTH: Medium

MARRIOTT WINS ITS RENEWAL

Financing of the Roanoke Airport Marriott hotel has been restructured and extended, the result of negotiations that lasted for more than two years.

Robert E. Glenn, lawyer for Carter Associates, owner of the hotel, said Thursday that the negotiations had ended successfully.

A project to refurbish the guest rooms and public areas already is in progress, said Herman Turk, general manager. He declined to disclose the cost of the project.

The primary financing held by Aetna Life Insurance Co. has been extended to 2002, he said.

The secondary financing, now held by the Federal Deposit Insurance Corp., has been extended to 1998. That loan once was held by Virginia Federal Savings and Loan Association of Richmond, a failed thrift.

As part of the extension of the $20 million loan, the mortgage trustees advertised a foreclosure sale on May 26, 1992. The sale, scheduled for July 1992, never was held because of the continuing negotiations.

Carter Associations said at the time that the 320-room luxury hotel had average room occupancy of 75 percent - 10 percentage points above the industry average at that time - and all bill payments were current.

Glenn said at the time that payments on the the loan were current but it had been due for renewal since September 1991, when negotiations began.

Glenn said then that lenders generally do not want hotel loans.

The Marriott, built for $20 million, opened in October 1984. It was the most expensive hotel built in this part of the state.

The following year, Blue Ridge Associates, a Massachusetts limited partnership, and about 115 other investors bought interest in Carter Associates for $25 million - or about $5 million more than the original investment.

Carter Associates is headed by Salem architect and developer T.A. Carter.

With the investor funds in hand, the partnership in 1986 added a seven-story tower with 65 guest rooms, including a concierge section, private lounge and other accommodations.

The Marriott has two restaurants, a ballroom, meeting rooms, indoor and outdoor pools, a fitness center and lighted tennis courts.

It is on a 12-acre tract off Hershberger Road near Interstate 581.

by CNB