Host to Acquire Westin Kierland for $393 mil
BETHESDA, MD, May 22, 2006. Host Hotels & Resorts, Inc. today announced that it has entered into an agreement to acquire The Westin Kierland Resort & Spa in Scottsdale, Arizona, from The Kierland Resort Company, LLC, a Delaware limited liability company comprising affiliates of Woodbine Development Corporation of Dallas, TX, the Herberger Interests of Phoenix/Scottsdale, AZ, Cook Inlet Region, Inc., of Anchorage, AK, and Starwood Hotels & Resorts Worldwide, Inc. of White Plains, NY. The resort, which opened in November 2002, is situated on 252 acres of fee simple property and features 732 guestrooms, including 63 suites and 32 casita units, a 27-hole golf course and a full-service spa. The hotel has approximately 70,000 square feet of indoor meeting space, including a 24,600-square foot ballroom, and over 100,000 square feet of outdoor function space.
Christopher J. Nassetta, president and chief executive officer, stated, "We are thrilled to be acquiring this recently-constructed, world-class asset in the Phoenix/Scottsdale market, which is a strong growth market in which we have been seeking greater representation."
The purchase price is approximately $393 million and includes the assumption of $135 million of existing debt with an interest rate of approximately 5.08%. The hotel's Earnings Before Interest Expense, Taxes, Depreciation and Amortization (EBITDA) for the first 12 months of ownership is forecast to be approximately $32 million (EBITDA equals forecasted GAAP operating profit of approximately $21 million plus depreciation expense of approximately $11 million). The purchase is subject to customary closing conditions and is expected to close during the third quarter of 2006.
Molinaro Koger represented the seller on this transaction.
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