BETHESDA, Md., August 1, 2024– Host Hotels & Resorts, Inc. (NASDAQ: HST) (“Host” or the “Company”), the nation’s largest lodging real estate investment trust, today announced that it has acquired the fee simple interest in the 234-room 1 Hotel Central Park (the “Property”) for approximately $265 million in cash. The acquisition price represents an 11.1x EBITDA multiple or a cap rate of approximately 8.1% on the Property’s 2024 estimated results1.
The Property is expected to be among Host’s top-10 assets based on estimated full year 2024 results, with expected RevPAR of $545, Total RevPAR of $735, and EBITDA per key of over $100,0002, further improving the quality of the Company’s portfolio.
James F. Risoleo, President and Chief Executive Officer, said, “We are excited to add the 1 Hotel Central Park to our portfolio and further diversify Host’s presence in New York City, one of the top performing RevPAR markets in the country. This high performing hotel will provide exposure to the luxury guest in Upper Manhattan, the top RevPAR submarket in the city. This is our third 1 Hotel acquisition, after Nashville and South Beach, and we look forward to continuing our strong partnership with the sustainable luxury brand.”
Risoleo continued, “With meaningful in-place cash flow, no near-term anticipated capital expenditures, extremely low expected supply growth, and an irreplaceable location just one block from Central Park and Fifth Avenue’s luxury shopping district, we expect the Property to drive additional value creation for our stockholders.”
Opened in 2015, the LEED Certified® 1 Hotel Central Park is a sustainable luxury property with 234 keys, including 25 suites and a recently added 5-key penthouse that offers large terraces and a presidential suite. The lobby level features Jams, a three-meal restaurant and bar affiliated with James Beard award winner Jonathan Waxman. The second floor offers 2,000 square feet of contiguous and flexible meeting space, as well as a naturally lit fitness center and business center.
Additionally, the Company anticipates closing on the previously announced acquisition of the fee simple interest in the 450-room Ritz-Carlton O’ahu, Turtle Bay (the “Resort,”), later today. The Resort is located on the North Shore of Oahu, Hawaii, and includes a 49-acre land parcel entitled for development (the “Land Parcel”). The Company acquired the Resort and Land Parcel for approximately $680 million, net of key money. The acquisition price represents a 16.3x EBITDA multiple or a cap rate of approximately 5.3% on the Resort’s 2024 estimated results3. Based on preliminary 2025 forecasts and the conversion to a Ritz-Carlton, the acquisition price represents an approximate 13.5x EBITDA multiple or a cap rate of approximately 6.7%4.
Risoleo continued, “In 2024, we have acquired $1.5 billion of iconic and irreplaceable hotels at a blended 13.6x EBITDA multiple5. This represents over $100 million in estimated full-year EBITDA that we believe will grow as the assets we acquired stabilize. Looking back at the path to $2 billion of EBITDA we laid out just over a year ago at our investor day, we are halfway toward our target of $3 billion of acquisitions at a lower blended EBITDA multiple than assumed. We are extremely proud of the progress we have made with these diverse acquisitions, and we remain focused on being opportunistically positioned moving forward.”
