Business
Host Hotels & Resorts Acquires Hotel Van Zandt and Disposes of Sheraton Boston
BETHESDA, Md., Feb. 02, 2022 (GLOBE NEWSWIRE) -- Host Hotels & Resorts, Inc. (NASDAQ: HST), the nation's largest lodging real estate investment trust (the
About this update from Host Hotels & Resorts, Inc.
[{"type":"text","content":"BETHESDA, Md., Feb. 02, 2022 (GLOBE NEWSWIRE) -- Host Hotels & Resorts, Inc. (NASDAQ: HST), the nation's largest lodging real estate investment trust (the \"Company\"), today announced that it has acquired the fee simple interest in the Hotel Van Zandt, a 319-room luxury lifestyle hotel in Austin, Texas for a purchase price of approximately $246 million including its $4 million FF&E reserve. The net acquisition price of approximately $242 million represents a 13.2x multiple on 2019 EBITDA1 and stabilization is expected in the 2025-2027 timeframe at approximately 10-12x EBITDA1. The Company funded the acquisition with approximately $140 million in proceeds from recent dispositions, and it assumed approximately $101.5 million of existing secured debt. The debt matures in 2027, and the interest rate is fixed at an annual rate of 4.67%. This recently constructed hotel opened in 2015 with rooms that range in size from 330 to 1,100 square feet, including 52 suites. The hotel offers 13,000 square feet of indoor meeting space and three F&B outlets including a rooftop pool bar and a full-service restaurant with a stage and nightly live music. Hotel Van Zandt is well-located in Austin’s Rainey Street district, the most popular entertainment district in the downtown area. Bolstered by the relocation of several Fortune 500 company headquarters, Austin is the third fastest growing city of the last decade and its population is projected to grow another 30% by 2029. The Rainey Street submarket is poised to benefit from several nearby mixed-use developments currently under construction or in planning, as well as the $1.2 billion expansion of the convention center, situated within walking distance of the hotel. In addition to the Hotel Van Zandt acquisition, the Company also announced that it has sold the 1,220-room Sheraton Boston for approximately $233 million. The sale price represents a 14.2x EBITDA multiple2 on 2019 EBITDA, which includes approximately $135 million of estimated foregone capital expenditures over the next five years. In connection with the sale, the Company is providing a $163 million bridge loan to the purchaser. James F. Risoleo, President and Chief Executive Officer, said, “We are thrilled to add a second hotel in Austin to our portfolio with the Hotel Van Zandt. The hotel is well-located with no expected near-term capex ...