Lone Star Funds Affiliate Acquires Five Hotels From Host

Rhea-AI Summary

Lone Star Funds has acquired five luxury hotels from Host Hotels & Resorts (NASDAQ: HST) for $551 million. This deal includes $11 million allocated for furniture, fixtures, and equipment replacement. The properties involved are The Whitley and The Westin Buckhead in Atlanta, The Westin Los Angeles Airport, San Ramon Marriott, and Westfields Marriott Washington Dulles. The acquisition targets strong markets benefiting from both corporate and leisure demand, with plans for ongoing renovations to enhance property value.

Positive

• Acquisition value of $551 million indicates strong market positioning.
• Properties in strong markets with diverse demand (corporate and leisure).
• Ongoing renovations may enhance property value and appeal.

Negative

• None.

Luxury and Upper Upscale U.S. Properties Located in Atlanta, Los Angeles, San Ramon, CA, and Chantilly, VA

NEW YORK & DALLAS--(BUSINESS WIRE)-- Lone Star Funds today announced that a Lone Star affiliate has acquired five luxury and upper upscale hotels from Host Hotels & Resorts, Inc. (NASDAQ: HST) for an aggregate purchase price of $551 million, including approximately $11 million for furniture, fixtures, and equipment (FF&E) replacement funds.

The hotels are: The Whitley, A Luxury Collection Hotel, Atlanta Buckhead in Georgia; The Westin Buckhead Atlanta in Georgia; The Westin Los Angeles Airport, located at the Los Angeles International Airport in California; San Ramon Marriott, located in Santa Clara, California; and the Westfields Marriott Washington Dulles, located in Chantilly, Virginia.

“We are looking forward to completing the program of renovations already underway at these terrific properties, which are located in strong markets with an attractive mix of industry exposure and corporate and leisure demand,” said André Collin, President, Commercial Real Estate Funds, Lone Star.

About Lone Star

Lone Star, founded by John Grayken, is a leading private equity firm advising funds that invest globally in real estate, equity, credit and other financial assets. Since the establishment of its first fund in 1995, Lone Star has organized 21 private equity funds with aggregate capital commitments totaling approximately $85 billion. The firm organizes its funds in three series: the Commercial Real Estate Fund series; the Opportunity Fund series; and the U.S. Residential Mortgage Fund series. Lone Star invests on behalf of its limited partners, which include institutional investors such as pension funds and sovereign wealth funds, as well as foundations and endowments that support medical research, higher education, and other philanthropic causes. For more information regarding Lone Star Funds, go to www.lonestarfunds.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211103006131/en/

Media:

For Lone Star:

Christina Pretto

+1 (212) 849-9662 (o)

+1 (917) 499-4260 (c)

cpretto@lonestarfunds.com

Source: Lone Star Funds

FAQ

What hotels did Host Hotels & Resorts sell to Lone Star Funds?

Host Hotels & Resorts sold The Whitley, Westin Buckhead Atlanta, Westin Los Angeles Airport, San Ramon Marriott, and Westfields Marriott Washington Dulles.

What was the total purchase price for the hotel acquisition?

The total purchase price for the acquisition was $551 million.

How much was allocated for furniture and equipment in the hotel acquisition?

Approximately $11 million was allocated for furniture, fixtures, and equipment replacement.

What does the acquisition mean for Host Hotels & Resorts shareholders?

The acquisition could impact shareholder value positively if the properties appreciate post-renovation and attract more demand.

In which states are the hotels located that were acquired?

The hotels are located in Georgia, California, and Virginia.