Blackstone Real Estate has reached an agreement to sell Turtle Bay Resort, along with a 49-acre land parcel entitled for development, for $725 million. The purchase price allocation is expected to be $630 million for the resort and $50 million for the land parcel, subject to final appraisal.
The buyer is Host Hotels & Resorts.
Blackstone purchased the hotel in 2018 for $332 million and subsequently invested significant capital in renovations, including the guestrooms and bungalows, lobby, pools, restaurants, retail, meeting space, spa, a new club lounge, building systems, as well as an updated exterior and arrival experience.
Host expects the resort will be one of its top assets based on estimated full year 2024 results with an expected RevPAR of $570, Total RevPAR of $980, and EBITDA per key of $86,000. After ramping up from the recent renovation and the rebranding, the REIT expects the resort to stabilize between approximately 10-12x EBITDA in the 2027-2029 timeframe.
The sale is expected to close in the third quarter of 2024.
At closing, Host intends to transition management to Marriott and flag the hotel with The Ritz-Carlton brand.