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MAUI, HI-Host Marriott Corp. of Bethesda, MD has agreed to pay $321 million ($398,000 per room) for the 806-room Hyatt Regency Maui Resort and Spa on Maui’s Kaanapali Beach. The purchase price, to be paid in part with a recent equity issuance, includes the land underlying the asset. The seller is an affiliate of New York City-based Blackstone Real Estate Advisors.

The 23-year-old resort is situated on 37 acres of oceanfront on Maui’s northwest coast. The hotel includes 25,000 sf of indoor meeting and banquet space, 100,000 sf of outdoor function space, two spacious pool decks and the 9,000-sf Spa Moana, which Host Marriott touts as the only oceanfront full-service spa in Hawaii.

Host Marriott says the resort is the most prominent hotel in Kaanapali and the RevPAR leader. The purchase price, a 20% discount to replacement cost, is 9.7 times the hotel’s forecasted 2003 EBITDA (Earnings Before Interest Expense, Taxes, Depreciation, Amortization) of $33 million, which breaks down to $23 million in forecasted GAAP operating profit plus depreciation expense of $10 million.

Host Marriott president/CEO Christopher Nassetta says Maui has extremely high barriers to entry for new supply. “In fact, supply has actually declined due to recent conversions to timeshare,” says Nasetta. “As a result, we believe there is meaningful upside potential over the next several years.”

Bear, Stearns & Co. Inc. represented Blackstone in connection with the transaction.

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