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HomeHotels & LodgingHost Hotels & Resorts, Inc. announces three transactions

Host Hotels & Resorts, Inc. announces three transactions

Acquisitions of The b2 Miami Downtown Hotel For $57.5 million and 90% of the Grand Hotel Esplanade Berlin for gross purchase price of 81 million euros and the sale of Tampa Marriott Waterside Hotel & Marina for $199 million.

BETHESDA, MD. – ­ Host Hotels & Resorts, Inc. announced the following three transactions. The company acquired the 242-room fee-simple b2 miami downtown hotel for $57.5 million. The company also entered into a management agreement with Destination Hotels & Resorts to reposition and relaunch the hotel under a new independent identity in late 2014. The hotel is located in the heart of Miami’s business and financial district within walking distance of the American Airlines Arena and is situated on Biscayne Boulevard across from Bayfront Park, ensuring that the hotel will continue to have unobstructed water views. In addition, the City of Miami has committed to plans to increase the density in selected areas of downtown Miami which includes the hotel’s site creating an opportunity for future redevelopment.

The company’s joint venture in Europe, in which the company holds a 33.4% interest, acquired a 90% ownership interest in the entity that owns the 394-room fee-simple Grand Hotel Esplanade in Berlin. The hotel was acquired for a gross purchase price of 81.0 million euros, and is subject to approximately 48.7 million euros of debt with a margin of 219 basis points over Euribor which is non-recourse to the joint venture and the company. An affiliate of EVENT Hotel group, an established European operator, will continue to operate the hotel and another affiliate of Event will retain a 10% minority interest in the entity. The new joint venture plans to rebrand the property with an international brand under a franchise agreement. The hotel is located in the west of Berlin, a short walk from the city’s leading high-end retail street and strategically situated between the old west of the city and the Mitte district (new center), in proximity to many embassies. The acquisition further diversifies the current European hotel portfolio and provides new exposure to a target market in Germany.

The company sold the 719-room Tampa Marriott Waterside Hotel & Marina for $199 million. This sale reduced our market presence in our non-target markets.   

Struan B. Robertson, executive vice president and chief investment officer, stated, “I am pleased to announce a series of transactions that increase our exposure to target markets in which we have been under-represented and reduce our exposure to markets that are not part of our long-term strategy. The sale of the Tampa Marriott Waterside hotel is the successful conclusion of a long process in which Host generated significant profit by developing the asset in 1999 and then disposing of it to recycle capital. The acquisition of the b2 miami downtown hotel offers Host not only increased presence in Miami but also an opportunity to create value with a fully unencumbered asset with long-term redevelopment potential.”

Photo caption: b2 miami downtown hotel.

Co-Founder & Chief Editor - TravelDailyNews Media Network | Website | + Posts

Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.

She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.