Host Hotels & Resorts Acquires 305-Room W Hollywood for $219 Million
March 8, 2017 12:42pm
BETHESDA, Md., March 08, 2017 -- Host Hotels & Resorts, Inc. (NYSE:HST) today announced the acquisition of the 305-room W Hollywood (the “Hotel”), which includes 10,800 square feet of high-quality retail space and seven prominent supergraphic billboard signs for $219 million. The Hotel opened in 2010 and is centrally located in the dynamic and rapidly growing sub-market of Hollywood. The surrounding area features a strong base of business and transient demand generators and serves as a hub for a thriving creative community and entertainment related companies. The Hotel is also fully unencumbered by brand and management upon sale beginning in 2021.
"We are excited to announce the addition of this fantastic asset in a fast growing sub-market in Los Angeles, a market which represents only 5% of our total hotel EBITDA. In addition to further diversifying our company of iconic and irreplaceable hotels, the W Hollywood increases the overall quality of our collection of assets. The hotel ranks in the top-five in both RevPAR and EBITDA per key in our portfolio,” said James F. Risoleo, president and chief executive officer.
To facilitate a quarter-to-quarter comparison of our operations, we present certain operating statistics and operating results on a comparable hotel basis. We do not include acquired hotels in our comparable hotel set until the operating results for that hotel have been included in our consolidated results for one full calendar year. Therefore, the W Hollywood, as well as the Don CeSar acquired in February 2017, will not be included in our comparable hotels until January 1, 2019. In addition, hotels that we sell, such as the January 2017 sale of the JW Marriott Desert Springs Resort & Spa, are excluded from the comparable hotel set once the transaction has closed. Similarly, hotels with large-scale capital projects are also excluded from our comparable hotel set from the date of commencement. These hotels are returned to the comparable hotel set when the operations of the hotel have been included in our consolidated results for one full calendar year post completion of the large-scale capital project. In 2017, The Logan, The Camby, and Houston Airport Marriott properties were returned to the comparable hotel set. The following hotels will continue to be excluded from our comparable hotel results because they have undergone large-scale capital projects during the comparable periods reported: the Denver Marriott Tech Center, the Hyatt Regency San Francisco Airport, Marriott Marquis San Diego Marina, The Phoenician, and the Axiom Hotel. These will be in addition to the JW Marriott Desert Springs Resort & Spa, the Don CeSar, and W Hollywood, for the reasons discussed above. For more information on how we determine our comparable hotels, please see our earnings press release.
host hotels & resorts,
Host Hotels & Resorts, Inc. is an S&P 500 and Fortune 500 company and is the largest lodging real estate investment trust and one of the largest owners of luxury and upper-upscale hotels. The Company currently owns 90 properties in the United States and 7 properties internationally totaling approximately 53,900 rooms. The Company also holds non-controlling interests in seven joint ventures, including one in Europe that owns 10 hotels with approximately 3,900 rooms and one in Asia that has interests in five hotels in India. Guided by a disciplined approach to capital allocation and aggressive asset management, the Company partners with premium brands such as Marriott®, Ritz-Carlton®, Westin®, Sheraton®, W®, St. Regis®, Le Meridien®, The Luxury Collection®, Hyatt®, Fairmont®, Hilton®, Swissôtel®, ibis®, Pullman®, and Novotel® as well as independent brands in the operation of properties in over 50 major markets worldwide. For additional information, please visit the Company's website at www.hosthotels.com.
*This press release contains registered trademarks that are the exclusive property of their respective owners. None of the owners of these trademarks has any responsibility or liability for any information contained in this press release.
Contact: Bret D.S. McLeod
Contact: Gee Lingberg
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