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Mergers and Acquisitions

Host Hotels & Resorts, Inc. announces acquisition of five hotels by its European joint venture

Vicky Karantzavelou - 05 December 2012, 14:44

Host Hotels & Resorts, Inc. announced the acquisition of Paris Marriott Rive Gauche Hotel & Conference Center, Renaissance Amsterdam Hotel, Renaissance Paris La Defense Hotel, Renaissance Paris Vendome Hotel and Courtyard Paris La Defense West – Colombes

BETHESDA - Host Hotels & Resorts, Inc. announced that the second fund of the Company's joint venture in Europe, in which the Company holds a 33.4% interest, acquired five hotels from Whitehall comprising 1,733 rooms in two countries for approximately €440 million. The acquisition price, which represents a significant discount to replacement cost, has been partially funded by a €250 million loan secured by the properties with an interest rate of approximately 4.4%. The loan is non-recourse to the Company. The acquisition provides the venture with further brand and geographic diversification by adding hotels in three major submarkets in Paris and supplementing its presence in Amsterdam's city center. Paris has some of the strongest market fundamentals in Europe with high barriers to entry and historically strong RevPAR growth. Amsterdam is a key commercial hub in Europe that consistently ranks among the highest RevPAR markets in Europe.

The five fee simple properties include the 757-room Paris Marriott Rive Gauche Hotel & Conference Center, the 402-room Renaissance Amsterdam Hotel, the 327-room Renaissance Paris La Defense Hotel, the 97-room Renaissance Paris Vendome Hotel, and the 150-room Courtyard Paris La Defense West – Colombes.

As previously disclosed, the Company has an investment in the two most junior tranches of the mortgage loan secured by these properties. As part of this transaction, the Company will receive full repayment for its portion of the outstanding mortgage on these hotels in the amount of approximately €62 million.  

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