BETHESDA, MD-Locally based Host Hotels & Resorts is taking another pass through the public markets, with plans to sell as much as $400 million in stock, according to a regulatory filing. The proceeds would be used to, among other activities, make acquisitions.
Host has been on a buying spree: it most recently acquired the 266-room Le Meridien Piccadilly in London, England, for instance. However, with $400 million in firepower it could step up its pace--especially as more hotel investment sale offerings start coming to market.
In the DC area, for instance, enough trades have closed to give the market a sense of where pricing has settled--namely at $400,000 per key. Pebblebrook Hotel Trust’s acquisition of DC’s Hotel Monaco for $74 million was roughly at that benchmark, according to an earlier interview with Marc Magazine of the McLean, VA-based Humboldt Hospitality Advisors.
Other recent trades include the sale of the Fairview Park Marriott to a partnership organized by Thayer Lodging Group. Also, Pebblebrook Hotel made an earlier acquisition of the Doubletree Bethesda Hotel and Executive Meeting Center for $67.1 million. The Watergate Hotel traded for $45 million, acquired by Euro Capital Partners. The transaction that broke the ice, however, as Magazine says, was LaSalle Hotel Properties’ $95-million acquisition of Sofitel Lafayette Square.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
