Business
Host Hotels & Resorts, Inc. Acquires Hyatt Regency Austin
BETHESDA, Md., March 17, 2021 (GLOBE NEWSWIRE) -- Host Hotels & Resorts, Inc. (NASDAQ: HST) (the “Company”), the nation’s largest lodging real estate
About this update from Host Hotels & Resorts, Inc.
[{"type":"text","content":"BETHESDA, Md., March 17, 2021 (GLOBE NEWSWIRE) -- Host Hotels & Resorts, Inc. (NASDAQ: HST) (the “Company”), the nation’s largest lodging real estate investment trust (“REIT”), today announced that it has acquired the fee simple interest in the 448-room Hyatt Regency Austin in Austin, Texas for approximately $161 million in cash. The purchase price represents a 10.0% capitalization rate and an 8.8x EBITDA multiple based on 2019 actual results(1) and reflects a 20-25% discount to pre COVID-19 pricing based on comparable publicly-disclosed hotel sales.(2) Hyatt will continue to manage Hyatt Regency Austin under a long-term management agreement. James F. Risoleo, President and Chief Executive Officer, said, “We are excited to have executed an off-market, opportunistic acquisition of a high-quality hotel in one of the nation’s fastest growing cities, which continues to be a top beneficiary of corporate and people relocation. As travel resumes, we expect the well-located Hyatt Regency Austin to benefit from a strong rebound led by Austin’s multiple leisure and business demand drivers that are anchored in world-renowned music festivals, sporting events and blue-chip corporations. Additionally, we are encouraged by the reported contraction in Austin’s hotel construction pipeline relative to pre-pandemic levels and by the market’s significantly lower hotel operating costs compared to other markets. We expect this acquisition to raise our EBITDA growth profile, while positively enhancing our geographic diversification by adding a market with a thriving economy and a young and vibrant population.” Risoleo continued, “Our long-standing relationships and ability to execute quickly and with existing liquidity, provided us the opportunity to acquire this hotel ahead of a planned foreclosure auction at a very attractive yield based on 2019 performance. Our goal is for the Hyatt Regency Austin to exceed 2019 levels of revenues and EBITDA on a stabilized basis as Hyatt leverages Host’s data-driven asset management and enterprise analytics platforms to drive incremental expense reductions and productivity improvements at the hotel.” Situated on nearly six acres in a park-like setting along Lady Bird Lake, this waterfront hotel commands scenic views and is near the vibrant South Congress District with easy access to numerous leisure attractions, i...