Host Hotels & Resorts, Inc. (HST), a real estate investment trust specializing in lodging, announced its plans on Wednesday to acquire the Turtle Bay Resort in Hawaii for approximately $680 million, net of key money. Upon closing, Host intends to transition management to Marriott and rebrand the hotel under The Ritz-Carlton name.
The purchase price allocation is expected to be $630 million for the resort itself and $50 million for a land parcel designated for development, pending final appraisal.
Previously, Blackstone Real Estate, a subsidiary of Blackstone, Inc. (BX), disclosed its intention to sell Turtle Bay Resort for $725 million.
Host Hotels stated that it will acquire the fee simple interest in the 450-room Turtle Bay Resort located on Oahu's North Shore. This acquisition includes a 49-acre land parcel earmarked for development.
The transaction is subject to standard closing conditions and is anticipated to be finalized by late July 2024.
The resort, which was closed from March 2020 to June 2021, underwent a comprehensive renovation. The enhancements include upgraded guestrooms and bungalows, a new lobby, pools, restaurants, retail spaces, meeting facilities, a spa, a new club lounge, improved building systems, and an updated exterior and arrival experience.
James Risoleo, President and CEO of Host Hotels, commented, "Oahu is a highly sought-after leisure destination known for its consistently high occupancy rates, diverse international demand, and high barriers to entry, which have historically resulted in minimal supply growth and no significant expected near-term supply increases. Additionally, thanks to the resort's recent extensive renovation, we do not foresee substantial capital expenditures in the near future. With the planned Ritz-Carlton rebranding, we anticipate the resort will achieve exceptional growth as it stabilizes, further enhancing the EBITDA growth profile of our portfolio."
