Hyatt Raise US$1bn in Sale of Three Hotels

Date: February 2018

Location: Wailea Resort Maui Hawaii, San Francisco and Coconut Point Florida – USA

Name: Andaz Maui, Grand Hyatt San Francisco & Hyatt Regency

Grand Hyatt San Francisco

Seller: Hyatt Hotels Corporation. The sale reflects a blended EBITDA multiple of approximately 16x based on Hyatt’s 2018 pro-forma estimates. Hyatt will continue to manage the three hotels under long-term management agreements. The transaction is expected to close near the end of March 2018.

With the completion of this transaction, Hyatt is increasing its 2018 guidance for return of capital to shareholders to a minimum of $500 million from the previous figure of at least $300 million.

Hyatt as at February 2018 has more than 700 properties in more than 50 countries across six continents, under 14 brands.

Buyer: Host Hotels & Resorts…who are no strangers to the Hyatt brand with 10 or so Hyatt properties already in their portfolio.

As at February 2018, Host owned 94 upscale hotels with 53,000 rooms, in the USA alone. In 1982 Host (formerly the Van Noy Railway News and Hotel Co.) was sold to Marriott and then floated off into a separate company. and changed the company name to Host Hotels & Resorts in 2005. Outside of the USA they own Le Meridien in London UK, Renaissance Amsterdam in The Netherlands, Brussels Marriott Hotel Grand Place and others.

Price: US$1bn

Price per Key: US$702,741

THPT Comment: Hyatt continue the policy of selling-off the hotel assets and Host continues it’s aim to be the biggest property owner in the USA.

First Seen: Business Wire