BETHESDA, Md., Might 04, 2021 (GLOBE NEWSWIRE) — Host Resorts & Resorts, Inc. (NASDAQ: HST) (the “Firm”), the nation’s largest lodging actual property funding belief (“REIT”), at present introduced that it has acquired the charge easy curiosity within the 444-room 4 Seasons Resort Orlando at Walt Disney World® Resort for roughly $610 million in money.
Situated inside Walt Disney World® Resort, one of the crucial visited vacation spot resorts on this planet, the lodge sits on 289 acres, gives complimentary transport to 4 Walt Disney World® Resort theme parks, and is the one AAA 5 Diamond-rated lodge in Central Florida.
James F. Risoleo, President and Chief Govt Officer, mentioned, “4 Seasons Resort Orlando at Walt Disney World Resort is a really iconic and irreplaceable property that’s well-positioned to learn from important demand because the pandemic subsides and the 18-month celebration of Walt Disney World’s 50th anniversary begins in October. A robust market chief with a 2019 RevPAR Index over 215, this resort is now Host Resorts’ highest-ranked property based mostly on 2019 RevPAR and Complete RevPAR, and fifth highest based mostly on EBITDA per key.”
Risoleo continued, “Our capacity to execute on this off-market acquisition underscores the advantages of our prudent and disciplined capital allocation method that emphasised maximizing steadiness sheet capability and liquidity towards the top of the cycle. Our robust monetary basis of $2.5 billion in whole out there liquidity at year-2020, together with FF&E reserves, has enabled us to spend money on high-quality properties that we anticipate to raise our EBITDA progress profile and create long-term worth for our shareholders and different stakeholders.”
- Acquired for $610 million or $1.4 million per key, representing a 4.7% capitalization fee, 16.8x EBITDA a number of based mostly on 2019 outcomes1
2019 Resort Efficiency:
- Generated RevPAR of $561, Complete RevPAR of $923 and EBITDA/key of $81,5002, which represents 90% progress since 2016
- Embody 55,000 sq. ft of assembly house, six meals and beverage retailers, 5 swimming pools, three tennis courts, a 13,000 sq. foot spa, an 18-hole golf course and golf membership, and Explorer Island, a five-acre family-oriented water park / leisure space
Walt Disney World® Resort:
- 4 Seasons Resort Orlando at Walt Disney World® Resort presents complimentary transport to 4 Walt Disney World® Resort theme parks, on-site character breakfast, in-room celebrations, and a Disney Planning Heart.
1 In step with trade commonplace, we calculate the capitalization fee because the ratio of property’s web working earnings to its buy value and the EBITDA a number of because the ratio of the acquisition value to the property’s EBITDA. Each Web Working Revenue and EBITDA are non-GAAP measures. The comparable GAAP metrics using web earnings are the ratio of web earnings to the acquisition value of three.2% and the ratio of the acquisition value to web earnings of 31.6x. The property’s 2019 web earnings was $19 million and the distinction between web earnings and EBITDA is depreciation expense of $17 million, calculated on a professional forma foundation to account for Host’s possession.
2 The property’s 2019 web earnings/key was $43,500. See footnote 1 for the reconciliation of web earnings to EBITDA.
For extra data on the acquisition, please confer with the 4 Seasons Resort Orlando at Walt Disney World® Resort investor presentation positioned within the investor presentation part of the Firm’s web site.
About Host Resorts & Resorts
Host Resorts & Resorts, Inc. is an S&P 500 firm and is the most important lodging actual property funding belief and one of many largest homeowners of luxurious and upper-upscale motels. The Firm at the moment owns 77 properties in america and 5 properties internationally totaling roughly 47,200 rooms. The Firm additionally holds non-controlling pursuits in six home and one worldwide three way partnership.
Chief Monetary Officer