Host Hotels & Resorts strengthens portfolio with launch of Premier New York… | kbnmart

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Host Hotels & Resorts has expanded its portfolio with the acquisition of the luxury 1 Hotel Central Park in New York and the prestigious Ritz-Carlton O’ahu in Hawaii.

Host Hotels & Resorts, Inc. (NASDAQ: HST), a leading U.S. lodging real estate investment trust, today announced that it has purchased the entire 234-room 1 Hotel Central Park for approximately $265 million in cash. This purchase price corresponds to an EBITDA multiple of 11.1x and a capitalization ratio of approximately 8.1% based on estimated 2024 financial results.

The hotel is expected to rank among Host’s top 10 hotels based on full-year 2024 projected results, with projected revenue per available room (RevPAR) of $545, total RevPAR of $735, and EBITDA per room exceeding $100,000. The acquisition is set to enhance the overall quality of Host’s portfolio.

James F. Rizzolio, President and Chief Executive Officer, said,“We are excited to add 1 Hotel Central Park to our portfolio and further diversify Host’s presence in New York City, one of the country’s top-performing RevPAR markets. This high-performing hotel will provide exposure to luxury guests in Upper Manhattan, the city’s highest RevPAR market. This is our third 1 Hotel acquisition, following Nashville and South Beach, and we look forward to continuing our strong partnership with the sustainable luxury brand.”

Rizzolio continues“With significant on-site cash flow, no anticipated near-term capital expenditures, very low projected supply growth, and an unmissable location just one block from Central Park and the luxury shopping district of Fifth Avenue, we expect the property to drive additional value creation for our shareholders.”

Opened in 2015, 1 Hotel Central Park is a LEED®-certified, eco-friendly luxury hotel with 234 guest rooms, including 25 suites and a new 5-key penthouse with expansive terraces and a Presidential Suite. On the lobby level, the hotel is home to Jams, a restaurant and bar by James Beard Award-winning chef Jonathan Waxman. The second floor offers 2,000 square feet of versatile meeting space, along with a sunlit fitness center and business center.

Additionally, the Company is set to complete the acquisition of full ownership of the 450-room Ritz-Carlton Oahu, Turtle Bay later today. The property is located on the picturesque North Shore of Oahu, Hawaii, and includes a 49-acre parcel of land approved for further development. The resort and land were purchased for approximately $680 million, adjusted for the base insurance amount. This purchase price equates to an EBITDA multiple of approximately 16.3x and a capitalization rate of approximately 5.3% based on the resort’s estimated 2024 financial performance. In anticipation of its rebranding as The Ritz-Carlton, the investment is expected to deliver an EBITDA multiple of approximately 13.5x and a capitalization rate of approximately 6.7% for pro forma 2025 results.

Rizzolio continues“In 2024, we acquired $1.5 billion of iconic, irreplaceable hotels at a blended EBITDA multiple of 13.6x.⁵“This represents over $100 million of estimated annualized EBITDA that we believe will grow as the assets we acquire stabilize. Given the path to $2 billion EBITDA that we outlined a little over a year ago at our Investor Day, we are halfway toward our $3 billion acquisition target at a lower than expected blended EBITDA multiple. We are very proud of the progress we have made with these diverse acquisitions, and we remain focused on capitalizing on opportunities moving forward.”