BETHESDA, Md., April 20, 2022 (GLOBE NEWSWIRE) — Host Hotels & Resorts, Inc. (NASDAQ: HST), the nation’s largest lodging actual property funding belief (the “Company”), right this moment introduced that it has bought the 1,780-room Sheraton New York Times Square Hotel for roughly $373 million, which represents a 28.0x EBITDA a number of1 on 2019 EBITDA. The EBITDA a number of consists of roughly $136 million of estimated foregone capital expenditures over the subsequent 5 years. In reference to the sale, the Company is offering a $250 million bridge mortgage to the purchaser.
James F. Risoleo, president and chief government officer, stated, “The sale of the Sheraton New York Times Square Hotel represents another important step in the transformation of our portfolio as we look to deploy capital into assets that will bolster our EBITDA growth profile. Since the beginning of 2021, we have invested $1.6 billion in early-cycle acquisitions, and we have disposed of eight hotels at a value of $1.4 billion, including amounts due under seller financing. The blended EBITDA multiple on our seven hotel acquisitions is 13.0x2, which compares favorably to the 17.7x1 EBITDA multiple, including estimated foregone capital expenditures, on our eight hotel dispositions.”
About Host Hotels & Resorts
Host Hotels & Resorts, Inc. is an S&P 500 firm and is the most important lodging actual property funding belief and one of the most important house owners of luxurious and upper-upscale lodges. The Company at the moment owns 74 properties within the United States and 5 properties internationally totaling roughly 42,600 rooms. The Company additionally holds non-controlling pursuits in seven home and one worldwide joint ventures.
FORWARD LOOKING STATEMENTS
Note: This press launch accommodates forward-looking statements inside the which means of federal securities rules. These forward-looking statements are recognized by their use of phrases and phrases equivalent to “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “plan,” “predict,” “project,” “will,” “continue” and different related phrases and phrases, together with references to assumptions and forecasts of future outcomes. Forward-looking statements are usually not ensures of future efficiency and contain recognized and unknown dangers, uncertainties and different elements which can trigger the precise outcomes to vary materially from these anticipated on the time the forward-looking statements are made. These dangers embrace, however are usually not restricted to: the period and scope of the COVID-19 pandemic and its brief and longer-term affect on the demand for journey, transient and group business, and ranges of client confidence; actions governments, companies and people soak up response to the pandemic, together with limiting or banning journey; the affect of the pandemic and actions taken in response to the pandemic on world and regional economies, journey, and financial exercise, together with the period and magnitude of its affect on unemployment charges, business funding and client discretionary spending; the tempo of restoration when the COVID-19 pandemic subsides; common financial uncertainty in U.S. markets the place we personal lodges and a worsening of financial circumstances or low ranges of financial development in these markets; different modifications (aside from the COVID-19 pandemic) in nationwide and native financial and business circumstances and different elements equivalent to pure disasters and climate that may have an effect on occupancy charges at our lodges and the demand for resort services; the affect of geopolitical developments exterior the U.S. on lodging demand; volatility in world monetary and credit score markets; working dangers related to the resort business; dangers and limitations in our working flexibility related to the extent of our indebtedness and our means to fulfill covenants in our debt agreements; dangers related to {our relationships} with property managers and three way partnership companions; our means to take care of our properties in a first-class method, together with assembly capital expenditure necessities; the consequences of resort renovations on our resort occupancy and monetary outcomes; our means to compete successfully in areas equivalent to entry, location, high quality of lodging and room fee constructions; dangers related to our means to finish acquisitions and tendencies and develop new properties and the dangers that acquisitions and new developments could not carry out in accordance with our expectations; our means to proceed to fulfill advanced guidelines to ensure that us to stay an actual property funding belief for federal earnings tax functions; and different dangers and uncertainties related to our business described within the Company’s annual report on Form 10-Okay, quarterly experiences on Form 10-Q and present experiences on Form 8-Okay filed with the SEC. Although the Company believes the expectations mirrored in such forward-looking statements are based mostly upon cheap assumptions, it may give no assurance that the expectations will likely be attained or that any deviation is not going to be materials. All data on this launch is as of the date of this launch and the Company undertakes no obligation to replace any forward-looking assertion to adapt the assertion to precise outcomes or modifications within the Company’s expectations.
1 Consistent with trade apply, we calculate the EBITDA a number of because the ratio of the acquisition value to the property’s EBITDA. EBITDA is a non-GAAP measure. The comparable GAAP metric to EBITDA a number of is the ratio of the acquisition value to internet earnings (loss). Disposition multiples are calculated because the ratio between the gross sales value (plus estimated prevented capital expenditures) and 2019 EBITDA. The ratio of the acquisition value to 2019 internet loss for the Sheraton New York Times Square Hotel is (429.9)x. The Sheraton New York Times Square Hotel 2019 internet loss is $(1) million and the distinction between internet loss and EBITDA is depreciation expense of $19 million. The ratio of the acquisition value to internet earnings for the mixed 2021 and 2022 tendencies is 34.5x and estimated prevented capital expenditures over the 5 years following disposition date totaled $426 million. The mixed internet earnings of the 2021 and 2022 tendencies is $39 million and the distinction between internet earnings and EBITDA is depreciation expense of $61 million.
2 The blended acquisition EBITDA a number of is predicated on 2019 operations for Hyatt Regency Austin, Four Seasons Resort Orlando at Walt Disney World® Resort, and Kimpton Hotel Van Zandt and the 2021 forecast at acquisition for Baker’s Cay Resort Key Largo and Alila Ventana Big Sur, as these lodges skilled renovation disruption and closures in 2019. Estimated normalized 2019 operations had been used for The Laura Hotel, because the resort was re-opened with a brand new supervisor and model in 2021, and for The Alida, Savannah, adjusting for development disruption to the encircling Plant Riverside District and for preliminary ramp-up of resort operations. The blended ratio of the acquisition value to internet earnings for these acquisitions is 21.1x, utilizing internet earnings of $74 million. The distinction between mixed internet earnings and EBITDA is depreciation expense of $46 million. In addition, EBITDA consists of an upward adjustment of $13 million to replicate normalized operations for each The Laura Hotel and The Alida, Savannah.
SOURAV GHOSH
Chief Financial Officer
(240) 744-5267
JAIME MARCUS
Investor Relations
(240) 744-5117
[email protected]
