Host Hotels Sells Two Four Seasons Resorts for $1.1B
Host Hotels announced it has sold the 444-room Four Seasons Resort Orlando at Walt Disney World Resort in Orlando, Florida and the 125-room Four Seasons Resort and Residences Jackson Hole in Teton Village, Wyoming, for a sale price of $1.1B. The company purchased the hotels in 2021 and 2022, respectively, for a total of $925M with no significant capital expenditures required over its ownership period. The sale price represents a 14.9x EBITDA multiple on trailing twelve-month EBITDA. The EBITDA multiple includes approximately $88M of estimated foregone capital expenditures over the next five years. The combined investment represents an 11% unlevered internal rate of return over the company's ownership period. The IRR includes $58M of capital expenditures, which was funded within the FF&E reserve, as well as transaction costs. These items negatively impacted the IRR calculation by approximately 170 basis points. The sale excludes the ongoing condo development at the Four Seasons Resort Orlando at Walt Disney World Resort. In January, the company also closed on the previously announced disposition of the 232-room St. Regis Houston for $51M. The sale price represents a 25.0x EBITDA multiple on trailing twelve-month EBITDA. The EBITDA multiple includes approximately $49M of estimated foregone capital expenditures over the next five years.
