Host Hotels & Resorts (NASDAQ:HST) acquired the fee simple interest in the 448-room Hyatt Regency Austin in Texas for ~$161M in cash raising the former’s EBITDA growth profile and expanding its presence geographically.
The purchase price represents a 10% capitalization rate and an 8.8x EBITDA multiple based on 2019 actual results and reflects a 20-25% discount to pre COVID-19 pricing based on comparable publicly-disclosed hotel sales.
Hyatt will continue to manage Hyatt Regency Austin under a long-term management agreement.
“Our goal is for the Hyatt Regency Austin to exceed 2019 levels of revenues and EBITDA on a stabilized basis as Hyatt leverages Host’s data-driven asset management and enterprise analytics platforms to drive incremental expense reductions and productivity improvements at the hotel,” president & CEO James F. Risoleo commented.
