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Investment Corp. Acquiring the Hotel Arts Barcelona, a Ritz-Carlton for Approximately $526 million |
 BETHESDA,
Md., July 24, 2006 - Host Hotels & Resorts, Inc. (NYSE: HST) today
announced that its joint venture in the Netherlands with Stichting Pensioenfonds
ABP, the Dutch pension fund, and Jasmine Hotels Pte Ltd, an affiliate of
GIC Real Estate Pte Ltd, the real estate investment company of the Government
of Singapore Investment Corporation Pte Ltd, entered into an agreement
to purchase the Hotel Arts Barcelona, a Ritz-Carlton hotel. The hotel,
which is located on the shores of the Mediterranean Sea in Barcelona, Spain,
contains 483 luxuriously-appointed guestrooms, including 28 luxury duplex
apartments. The property, which recently underwent a comprehensive guestroom
renovation that was completed in June 2006, also features 24,000 square
feet of meeting space including the largest ballroom in Barcelona, five
high-quality restaurants and a full-service spa with eight treatment rooms.
The transaction also includes the purchase of an approximate 80,000 square-foot
casino that is leased to a third-party operator.
Christopher J. Nassetta, president and chief executive officer, stated, "We are very pleased to be acquiring the Hotel Arts, one of the finest and most unique hotels in Europe at what we believe will be very attractive yields to the joint venture." The purchase price for the property is approximately euro 417 million, including the assumption of approximately euro 280 million of debt with an interest rate under 5%. The hotel's Earnings Before Interest Expense, Taxes, Depreciation and Amortization (EBITDA) for the first 12 months of ownership is forecast to be approximately euro 32 million (EBITDA equals forecasted GAAP operating profit of approximately euro 17 million plus depreciation expense of approximately euro 15 million). The purchase is subject to customary closing conditions and is expected to close in August. About Host Hotels & Resorts
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. |
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Host Hotels & Resorts, Inc.
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