Source: Hotels - 4 December 2012
Host Hotels & Resorts announced Monday that the second fund of the company’s joint venture in Europe — in which the Bethesda, Maryland-based REIT holds a 33.4% interest — has acquired five hotels in Paris and Amsterdam from Whitehall for approximately €440 million (US$575 million).
The acquisition price, which represents a significant discount to replacement cost, has been partially funded by a €250 million (US$326.7 million) loan secured by the properties with an interest rate of approximately 4.4%. The loan is non-recourse to Host.
The properties include the 757-room Paris Marriott Rive Gauche Hotel & Conference Center, the 402-room Renaissance Amsterdam Hotel, the 327-room Renaissance Paris La Defense Hotel, the 97-room Renaissance Paris Vendome Hotel, and the 150-room Courtyard Paris La Defense West - Colombes.
Host noted in a news release that the acquisition provides the joint venture with further brand and geographic diversification by adding hotels in three major submarkets in Paris and supplementing its presence in Amsterdam's city center. Paris has some of the strongest market fundamentals in Europe with high barriers to entry and historically strong RevPAR growth, Host said, while Amsterdam is a key commercial hub in Europe that consistently ranks among the highest RevPAR markets in Europe.