Host Hotels & Resorts Announces Acquisition of Hotel Arts Barcelona by Its European Joint Venture
July 24 2006 - 9:30AM
PR Newswire (US)
BETHESDA, Md., July 24 /PRNewswire-FirstCall/ -- 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. (Logo:
http://www.newscom.com/cgi-bin/prnh/20060417/HOSTLOGO ) 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 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. (Note: This press
release contains forward-looking statements within the meaning of
federal securities regulations. These forward-looking statements
are identified by their use of terms and phrases such as
"anticipate," "believe," "could," "estimate," "expect," "intend,"
"may," "plan," "predict," "project," "will," "continue" and other
similar terms and phrases, including references to assumption and
forecasts of future results. Forward-looking statements are not
guarantees of future performance and involve known and unknown
risks, uncertainties and other factors which may cause the actual
results to differ materially from those anticipated at the time the
forward- looking statements are made. These risks include, but are
not limited to: national and local economic and business
conditions, including the potential for terrorist attacks, that
will affect occupancy rates at our hotels and the demand for hotel
products and services; operating risks associated with the hotel
business; risks associated with the level of our indebtedness and
our ability to meet covenants in our debt agreements; relationships
with property managers; our ability to maintain our properties in a
first-class manner, including meeting capital expenditure
requirements; our ability to compete effectively in areas such as
access, location, quality of accommodations and room rate
structures; changes in travel patterns, taxes and government
regulations which influence or determine wages, prices,
construction procedures and costs; our ability to complete pending
acquisitions and dispositions; and our ability to continue to
satisfy complex rules in order for us to qualify as a Real Estate
Investment Trust for federal income tax purposes and other risks
and uncertainties associated with our business described in the
Company's filings with the SEC. Although the Company believes the
expectations reflected in such forward-looking statements are based
upon reasonable assumptions, it can give no assurance that the
expectations will be attained or that any deviation will not be
material. All information in this release is as of July 24, 2006,
and the Company undertakes no obligation to update any
forward-looking statement to conform the statement to actual
results or changes in the Company's expectations.)
http://www.newscom.com/cgi-bin/prnh/20060417/HOSTLOGO
http://photoarchive.ap.org/ DATASOURCE: Host Hotels & Resorts,
Inc. CONTACT: Kevin J. Jacobs, Vice President of Host Hotels &
Resorts, Inc., +1-240-744-5212 Web site: http://www.hosthotels.com/
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