Host Hotels is expanding its footprint in New York City thanks to a new purchase worth roughly $265 million.
The real estate investment trust said it acquired 1 Hotel Central Park on 1414 6th Ave in Manhattan.
“The acquisition price represents an 11.1x EBITDA multiple or a cap rate of approximately 8.1% on the Property’s 2024 estimated results,” Host Hotels said in a statement.
The 234-room luxury hotel comes with 25 suites (including a presidential one), and a 5-key penthouse. The second floor contains meeting space that spans 2,000 square feet, a fitness center, and a business area. A Three-meal bar and restaurant that’s affiliated with former chefs James Beard and Jonathan Waxman, can be found in the lobby level of the property.
Plus, 1 Hotel is just a block away from the luxury shopping district, and Central Park. Host expects the new purchase to be among its top 10 assets and anticipates revenue per available room (RevPar) to reach $545 when reporting its full-year 2024 results. The company also expects EBITDA per key to exceed $100,000.
This purchase adds to Host’s New York portfolio, which includes New York Marriot Marquis and New York Marriot Downtown. While RevPar in the industry for the second quarter slowed down, James F. Risoleo, president and CEO of Host said that New York City is “one of the top” performing markets in that category.
“This high performing hotel will provide exposure to the luxury guest in Upper Manhattan, the top RevPAR submarket in the city,” he said.
“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 added that the company has no near-term capital expenditures and expects the purchase to create more value for shareholders.
Plus, Host announced it completed the purchase of Ritz-Carlton O’ahu, Turtle Bay for roughly $680 million. The Oahu, Hawaii property features 450 rooms for guests.
Additionally, Risoleo said it has acquired a total of $1.5 billion worth of hotels in 2024 at a “blended 13.6x EBITDA multiple.” The REIT owns 76 U.S. properties in total.