Host Hotels, GIC, ABP team up in EUR 565m hotel deal

Host Hotels & Resorts has announced that its European joint venture with Dutch pension fund ABP and an affiliate of Singapore's GIC Real Estate has acquired six hotels in France, Germany and the Netherlands for a total of EUR 565 mln. Host is the largest lodging real estate investment trust in the US and GIC is the investment arm of the government of Singapore.

The partnership has entered into an agreement with an unnamed seller for the purchase of the hotels that provide almost 2,000 rooms across three countries. The purchase price includes the assumption of approximately EUR 434 mln of debt at an interest rate below 6%. In a statement, Host Hotels & Resorts said that the properties will benefit from recent capital investment of over EUR 80 mln and are located in prime urban markets that have strong room rate performance and low supply growth.

Upon closing of the deal, the European Joint Venture will be fully funded and invested, owning 17 hotels with nearly 5,500 rooms in eight countries. The purchase is subject to regulatory approvals and other closing conditions and is expected to close by the end of this year.

The properties are the 757-room Marriott Rive Gauche Hotel & Conference Center in Paris, the 402-room Renaissance Hotel in Amsterdam, the 327-room Renaissance Hotel at Paris’ La Defense, the 97-room Renaissance Vendome Hotel in Paris, the 221-room Courtyard Seestern in Duesseldorf and the 150-room Courtyard Paris Defense West - Colombes.