Lodging actual property funding belief (REIT) Host Lodges & Resorts introduced the acquisition of the price easy curiosity in Hyatt Regency Austin, which has a 448 room capability. Hyatt will proceed working the Hyatt Regency Austin underneath a long-term administration settlement.
Host Lodges & Resorts (HST) is paying a complete consideration of $161 million for this acquisition. This acquisition worth exhibits a ten% capitalization fee and an EBITDA a number of of 8.8x based mostly on 2019 outcomes.
Hyatt Regency Austin is situated close to Woman Chook Lake on about six acres and gives 45,000 sq. ft of assembly area, two meals and beverage shops, an outside pool and a health middle.
Host Lodges’ President and CEO, James F. Risoleo, mentioned, “We’re excited to have executed an off-market, opportunistic acquisition of a high-quality resort in one of many nation’s quickest rising cities, which continues to be a prime beneficiary of company and other people relocation. As journey resumes, we count on the properly situated Hyatt Regency Austin to profit from a robust rebound led by Austin’s a number of leisure and enterprise demand drivers which are anchored in world famend music festivals, sporting occasions and blue-chip companies.”
Risoleo added, “Our purpose is for the Hyatt Regency Austin to exceed 2019 ranges of revenues and EBITDA on a stabilized foundation as Hyatt leverages Host’s knowledge pushed asset administration and enterprise analytics platfor to drive incremental expense reductions and productiveness enhancements on the resort.”
Notably, Host Lodges expects the acquisition to extend its EBITDA development and improve its geographic diversification. (See Host Hotels stock analysis on TipRanks)
On March 12, BTIG analyst James W. Sullivan reiterated a Purchase ranking on the inventory and raised its worth goal to $19 (3.15% upside potential) from $17.
Turning to the remainder of the Avenue, the inventory has a Average Purchase consensus ranking alongside a mean analyst price target of $17.75 (3.64% draw back potential), based mostly on 4 Buys and 4 Holds. Shares have rallied about 76% over the previous 12 months.
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