Westin Kierland Resort & Spa for $393 Million
May 22, 2006 - Host Hotels & Resorts, Inc. today announced that it has entered into an agreement to acquire The Westin Kierland Resort & Spa in Scottsdale, Arizona, from The Kierland Resort Company, LLC, a Delaware limited liability company comprising affiliates of Woodbine Development Corporation of Dallas, TX, the Herberger Interests of Phoenix/Scottsdale, AZ, Cook Inlet Region, Inc., of Anchorage, AK, and Starwood Hotels & Resorts Worldwide, Inc. of White Plains, NY. The resort, which opened in November 2002, is situated on 252 acres of fee simple property and features 732 guestrooms, including 63 suites and 32 casita units, a 27-hole golf course and a full-service spa. The hotel has approximately 70,000 square feet of indoor meeting space, including a 24,600-square foot ballroom, and over 100,000 square feet of outdoor function space.
Christopher J. Nassetta, president and chief executive officer, stated, "We are thrilled to be acquiring this recently-constructed, world-class asset in the Phoenix/Scottsdale market, which is a strong growth market in which we have been seeking greater representation."
The purchase price is approximately $393 million and includes the assumption of $135 million of existing debt with an interest rate of approximately 5.08%. The hotel's Earnings Before Interest Expense, Taxes, Depreciation and Amortization (EBITDA) for the first 12 months of ownership is forecast to be approximately $32 million (EBITDA equals forecasted GAAP operating profit of approximately $21 million plus depreciation expense of approximately $11 million). The purchase is subject to customary closing conditions and is expected to close during the third quarter of 2006.
Molinaro Koger represented the seller on this transaction.
About Host Hotels & Resorts
Host Hotels & Resorts, Inc. is a lodging real estate company that currently owns or holds controlling interests in 129 luxury and upper upscale hotel properties primarily operated under premium brands such as Marriott(R), Westin(R), Sheraton(R), Ritz-Carlton(R), Hyatt(R), W(R), Four Seasons(R), St. Regis(R), The Luxury Collection(R), Fairmont(R), Hilton(R) and Swissotel(R)*. For further information please visit the Company's website at http://www.hosthotels.com/.
This press release contains registered trademarks that are the exclusive property of their respective owners. None of the owners of these trademarks has any responsibility or liability for any information contained in this press release.
This press release contains forward-looking statements within the meaning of federal securities regulations.
Kevin J. Jacobs, Vice President Corporate Finance
|Also See:||Woodbine Development Corporation's $180-million Westin Kierland Resort & Spa Set to Open in January 2003 / December 2001|
|Three Lenders Round Out the $180-million Capitalization Package for the 750-room Westin Kierland Resort / Dec 2000|
|Woodbine Development Corporation Obtains $74.25-million Construction and Permanent Loan for $135-million Hyatt resort Near Austin, Texas / September 2004|