The Butler Redevelopment Authority and its nonprofit partner, the Butler Area Development Corp., approved the sale of the yet-to-open Marriott Springhill Suites in downtown Butler from the current owner to Hari Hotels LLC for $7.35 million on Friday.

The authority’s 25 percent share in the hotel is held by the corporation, which was created for the hotel development.

Both entities’ boards of directors approved the sale without discussion following an executive session in Friday’s joint meeting.

When the sale between the current owner and developer J.S. Capitol, which operates under the name Butler Hotel Properties LP, and Hari closes on Jan. 5 or 6, the corporation will receive $227,000 for the 25 percent share and the authority will receive $182,000 as reimbursement for property acquisition, environmental review and engineering and legal costs.

Other payments include a 3 percent broker fee of $220,000, $125,000 in closing costs, a 1 percent real estate transfer tax of $73,500 and a $34,000 prepayment penalty from NexTier.

That money will be paid after a $3.4 million loan from NexTier Bank, a $2 million bridge loan from PNC Bank, $1 million owed to vendors and $72,400 in property taxes are paid from the sale proceeds, authority solicitor Thomas Breth said.

The loans, vendor bills and taxes are debts that receive first priority for payment from the sale proceeds, Breth said.

When the hotel is completed sometime in January, the authority will receive a $2 million state Redevelopment Capital Assistance Program grant.

Some of the grant money will be used to pay off the project debt and the balance will be distributed as sale proceeds, Breth said.

Butler City Council guaranteed the $2 million PNC Bank loan through a bond issue in 2015, when hotel construction began.

Delays in completing the hotel and the debt caused S & P Global Ratings to lower the city’s bond rating three times this year. The current rating of B signifies speculative grade bonds.

Attempts to contact Hari Hotels, based in Warminster, were not immediately successful.