Host, a Dutch Pension Fund and Jasmine Hotels Acquiring Hotel for $526 mil
Hotel Arts Barcelona, a Ritz-Carlton
BETHESDA, MD, July 24, 2006. Host Hotels & Resorts, Inc. (NYSE: HST) today announced that its joint venture in the Netherlands with Stichting Pensioenfonds ABP, the Dutch pension fund, and Jasmine Hotels Pte Ltd, an affiliate of GIC Real Estate Pte Ltd, the real estate investment company of the Government of Singapore Investment Corporation Pte Ltd, entered into an agreement to purchase the Hotel Arts Barcelona, a Ritz-Carlton hotel.
The hotel, which is located on the shores of the Mediterranean Sea in Barcelona, Spain, contains 483 luxuriously-appointed guestrooms, including 28 luxury duplex apartments. The property, which recently underwent a comprehensive guestroom renovation that was completed in June 2006, also features 24,000 square feet of meeting space including the largest ballroom in Barcelona, five high-quality restaurants and a full-service spa with eight treatment rooms. The transaction also includes the purchase of an approximate 80,000 square-foot casino that is leased to a third-party operator.
Christopher J. Nassetta, president and chief executive officer, stated, "We are very pleased to be acquiring the Hotel Arts, one of the finest and most unique hotels in Europe at what we believe will be very attractive yields to the joint venture."
The purchase price for the property is approximately euro 417 million, including the assumption of approximately euro 280 million of debt with an interest rate under 5%. The hotel's Earnings Before Interest Expense, Taxes, Depreciation and Amortization (EBITDA) for the first 12 months of ownership is forecast to be approximately euro 32 million (EBITDA equals forecasted GAAP operating profit of approximately euro 17 million plus depreciation expense of approximately euro 15 million). The purchase is subject to customary closing conditions and is expected to close in August.
Marriott International, Inc. (NASDAQ: MAR) is a global leading lodging company based in Bethesda,Maryland, USA, with more than 4,200 properties in 80 countries and territories. Marriott International reported revenues of nearly $14 billion in fiscal year 2014. The company operates and franchises hotels and licenses vacation ownership resorts under 19 brands, including: The Ritz-Carlton®, BVlgari®, EDITION®, JW Marriott®, Autograph Collection® Hotels, Renaissance® Hotels, Marriott Hotels®, Delta Hotels and Resorts®, Marriott Executive Apartments®, Marriott Vacation Club®, Gaylord Hotels®, AC Hotels by Marriott®, Courtyard®, Residence Inn®, SpringHill Suites®, Fairfield Inn & Suites®, TownePlace Suites®, Protea Hotels® and MoxyHotels®. Marriott has been consistently recognized as a top employer and for its superior business ethics. The company also manages the award-winning guest loyalty program, Marriott Rewards® and The Ritz-Carlton Rewards® program, which together surpass 50 million members. For more information or reservations, please visit our website at 
