La Defense WestColombes is
now part of the Host portfolio.
BETHESDA, MD-Host Hotels & Resorts has acquired five hotels in Paris and Amsterdam for a total of $576 million. The REIT acquired the properties via a joint venture it has in Europe, in which it holds a 33.4% stake. The JV acquired the hotels, totaling some 1,733 rooms, from Whitehall. The REIT says the properties have been acquired at a significant discount to replacement cost and was partially funded by a $327-million non-recourse loan secured by the properties with an interest rate of approximately 4.4%.
Four of the five hotels are located in Paris, giving the REIT broader exposure to this important market. The properties are the 757-room Paris Marriott Rive Gauche Hotel & Conference Center, the 402-room Renaissance Amsterdam Hotel, the 327-room Renaissance Paris La Defense Hotel, the 97-room Renaissance Paris Vendome Hotel and the 150-room Courtyard Paris La Defense West – Colombes.
Last quarter the REIT acquired a hotel in Germany via this joint venture, according to comments Ed Walter, president and CEO of Host, made during the company’s recent earnings call. That hotel was the 192-room Le Meridien Grand Hotel in Nuremberg and it was acquired for $37 million. Walter noted that the recently-renovated historic hotel is situated in a prime city center location near multiple cultural sites and benefits from leisure, corporate and convention traffic.
Larry Harvey, CFO of the REIT, elaborated on the JV’s finances during the same call, saying that its operating results “continue to exceed our expectations.” Excluding the Sheraton Roma, which is under a major renovation, RevPAR calculated in constant euros increased 4.1% for the quarter, he said. EBITDA margins improved 120 basis points, up over 9%. “As we previously discussed, inbound travel to the Eurozone from the US, UK and Asia and the Middle East continues to be strong and is a major source of euro lodging demand,” he said.