BETHESDA, Md., Dec. 21, 2018 (GLOBE NEWSWIRE) -- Host Hotels & Resorts, Inc. (NYSE: HST), the nation’s largest lodging real estate investment trust announced that it closed on the previously announced agreement to sell its 33% interest in the European joint venture to its partners. The gross asset value of its interest is approximately €700 million and equates to an EBITDA multiple of 17x on 2018 forecasted results.1 After accounting for fund level debt, net proceeds to the Company will be €435 million. The Company will use a portion of the proceeds to repay approximately €207 million draw on the credit facility.
“The closing of this sale represents the successful completion of one of my key initiatives set early on in my tenure as CEO to focus our attention back to the U.S., where we have the greatest scale and competitive advantage. This sale signifies the end of a successful platform at an attractive price and we are grateful to our partners for helping to build a strong business in Europe. We can now focus our attention on our investment activity in the U.S. as less than 2% of our EBITDA will come from hotels outside the country with only two hotels in Canada and three hotels in Brazil,” said James F. Risoleo, President and Chief Executive Officer. “The proceeds continue to strengthen our investment grade balance sheet and enhance our ability to make strategic investments that ultimately drive long-term value creation for our stockholders.”
1 The €435 million net proceeds represent a multiple of 42 times 2018 forecasted GAAP net income from the joint venture, excluding the gain on sale. The difference between net income and EBITDA is interest expense, depreciation, and tax of €9 million, €19 million, and €3 million, respectively.
About Host Hotels & Resorts
Host Hotels & Resorts, Inc. is an S&P 500 company and is the largest lodging real estate investment trust and one of the largest owners of luxury and upper-upscale hotels. The Company currently owns 88 properties in the United States and five properties internationally totaling approximately 52,000 rooms. The Company also holds non-controlling interests in 3 domestic joint ventures. Guided by a disciplined approach to capital allocation and aggressive asset management, the Company partners with premium brands such as Marriott®, Ritz-Carlton®,
Westin®, Sheraton®, W®, St. Regis®, Le Méridien®, The Luxury Collection®, Hyatt®, Fairmont®, Hilton®, Swissôtel®, ibis® and Novotel®, as well as independent brands in the operation of properties in over 50 major markets. For additional information, please visit the Company’s website at www.hosthotels.com.
