and Spa For $321 Million, $398,000 per room
|October 14, 2003 - Host Marriott Corporation today announced that it
has signed an agreement to acquire the 806-room Hyatt Regency Maui Resort
and Spa located on 37 acres of fee simple oceanfront property on Kaanapali
Beach. The hotel includes 25,000 square feet of indoor meeting and banquet
space and over 100,000 square feet of outdoor function space, including
Napili Garden, two spacious pool decks, gardens and lawns. The hotel's
recently expanded Spa Moana, the only oceanfront full- service spa in Hawaii,
has 9,000 square feet of spa facilities, including 11 treatment rooms,
a beauty salon, a relaxation lounge and sauna and steam rooms.
The purchase price is $321 million, or $398,000 per room, and will be paid in part with proceeds from Host Marriott's recent equity issuance. The hotel's 2003 Earnings Before Interest Expense, Taxes, Depreciation, Amortization (EBITDA) is forecasted to be approximately $33 million (EBITDA equals forecasted GAAP operating profit of $23 million plus depreciation expense of $10 million). The purchase is subject to customary closing conditions and is expected to close by year-end.
Highlights of the Transaction:
The Hyatt Regency Maui opened in 1980 and is located a short distance from historic Lahaina, which serves as the anchor for Maui's tourism industry. Maui is one of Hawaii's leading destination locations. The Hyatt is the most prominent hotel and the RevPAR leader in Kaanapali.
Host Marriott is a Fortune 500 lodging real estate company, which owns 120 upscale and luxury full-service hotel properties primarily operated under Marriott, Ritz-Carlton, Four Seasons, Hyatt and Hilton brand names.
The seller is an affiliate of Blackstone Real Estate Advisors. Bear, Stearns & Co. Inc. represented Blackstone in connection with the transaction.
This press release contains forward-looking statements within the meaning of federal securities regulations.
Gregory J. Larson
Senior Vice President Investor Relations
Host Marriott Corporation
|Also See:||Security Capital Sells Homestead Village To Blackstone Affiliate for $740 Million / November 20, 2001|
|Host Marriott Reports Loss of $43 million Compared with Loss of $8 million in Year-ago 1st Quarter; Forecasts a Loss for the Full Year / Hotel Operational Data / April 2003|
|Host Marriott Corporation Acquires the 1,139-room Boston Marriott Copley Place for $214 million, or $188,000 per Room / June 2002|