
9.	Dispositions

On September 21, 2018, we sold the New York Marriott Marquis retail and theater commercial units and the related signage areas of the hotel (the “Retail”) to Vornado Realty Trust for a sale price of $442 million and recorded a gain of approximately $386 million, which is net of the non-cash incurrence of a liability of approximately $35 million related to Vornado’s contractual right to future real estate tax rebates. Substantially all of the net proceeds from the sale of the Retail were used to close out a reverse like-kind exchange structure established in connection with the acquisition of the Hyatt portfolio in March 2018.

In addition, during the third quarter 2018, we sold the W New York – Union Square for $171 million and recorded a loss of $4 million and sold the JW Marriott Hotel Mexico City for $183 million and recorded a gain, net of tax, of approximately $163 million. In connection with the sale of the JW Marriott Hotel Mexico City, we allocated $53 million of the gain, net of tax, to the non-controlling partner.

Subsequent to quarter end, we reached an agreement to sell The Westin New York Grand Central hotel for proceeds of approximately $300 million, including approximately $20 million of FF&E replacement funds that are anticipated to be retained by us. The sale is expected to close during the first quarter of 2019, subject to customary closing conditions, including the receipt of required consents. As a result of the executed purchase agreement and the significant deposit at risk, the hotel is classified as held for sale as of September 30, 2018.