BETHESDA, MD–Host Hotels & Resorts announced it has placed “three irreplaceable Hyatt assets under contract for acquisition” in Hawaii, California and Florida as part of its quarterly earnings report.
They are the Andaz Maui in Wailea, the Grand Hyatt San Francisco and the Hyatt Regency Coconut Point in Bonita Springs, FL The properties are trading for a total of $1 billion, with the REIT putting down a $25 million deposit at-risk. These hotels “…are exactly the type of iconic real-estate we target and are located in what we believe are some of the best near-term growth markets in the US, said CEO James F. Risoleo in a prepared statement.
Risoleo noted that Host Hotels owns 10 Hyatt properties already and it looks “forward to growing that relationship in the future.”
The REIT has also closed its sale of the Key Bridge Marriott in the Washington, DC area for $190 million during the quarter and is under contract to sell the W New York for $190 million.
The three assets the REIT is acquiring are fee-simple and located in what the Host Hotels believes are some of the top growth markets in the US. Maui and San Francisco, it said, are benefiting from strong lodging demand and limited supply growth.
The REIT reported 41 cents per diluted share of FFO for the quarter ending Dec. 31, 2017, unchanged from the same period in 2016. For the year, FFO was $1.68 per share, compared with $1.69 in 2016.
Net income decreased $35 million to $93 million for the fourth quarter as an improvement in operations was offset by impairment expense of $43 million on the W New York and an increase in income tax expense, it reported. For the full year, net income decreased $200 million to $571 million, primarily due to a decrease in gain on sale of assets, net of tax.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
