Host Hotels & Resorts In Deal To Buy Turtle Bay Resort In Hawaii

(RTTNews) - Host Hotels & Resorts, Inc. (HST), a lodging real estate investment trust, announced Wednesday its agreement to acquire Turtle Bay Resort in Hawaii for approximately $680 million, net of key money. At closing, Host intends to transition management to Marriott and flag the hotel with The Ritz-Carlton brand.

The purchase price allocation is expected to be $630 million for the Resort and $50 million for the Land Parcel entitled for development, subject to final appraisal.

Earlier, Blackstone Real Estate, affiliated to Blackstone, Inc. (BX), announced its agreement to sell Turtle Bay Resort for $725 million.

In its statement, Host Hotels said it will acquire the fee simple interest in the 450-room Turtle Bay Resort on the North Shore of Oahu, including a 49-acre land parcel entitled for development.

The purchase is subject to customary closing conditions and the transaction is expected to close in late July of 2024.

The Resort was closed from March of 2020 to June of 2021, and following a transformative renovation now includes guestrooms and bungalows, lobby, pools, restaurants, retail, meeting space, spa, a new club lounge, building systems, as well as an updated exterior and arrival experience.

James Risoleo, President and Chief Executive Officer, Host Hotels, said, "Oahu is a high demand leisure destination with consistently high occupancy, an internationally diverse demand base, and high barriers to entry, resulting in slightly negative supply growth historically and essentially no anticipated near-term supply. In addition, because of the Resort's recent transformational renovation, we do not expect meaningful capital expenditures in the near term. ….With the planned Ritz-Carlton rebranding, we believe the Resort will generate outsized growth as it stabilizes, further elevating the EBITDA growth profile of our portfolio."