Wired News – Hyatt Announced Sale of Three-Property Hotel Portfolio to Host Hotels & Resorts
Stock Monitor: Host Hotels & Resorts Post Earnings Reporting
LONDON, UK / ACCESSWIRE / February 26, 2018 / Active-Investors.com has just released a free research report on Hyatt Hotels Corp. (NYSE: H). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=H as the Company's latest news hit the wire. On February 23, 2018, the Company announced that it has inked an agreement with Host Hotels & Resorts (NYSE: HST) for the sale of its three properties, the 301-room Andaz Maui at Wailea Resort, the 668-room Grand Hyatt San Francisco, and the 454-room Hyatt Regency Coconut Point Resort and Spa, for approximately $1.0 billion. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Hyatt Hotels and Host Hotels & Resorts most recent news are on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/?symbol=H
www.active-investors.com/registration-sg/?symbol=HST
The transaction, expected to close in March 2018, is subject to customary conditions and other regulatory approvals. Hyatt will continue to manage the three hotels under long-term management agreements.
Financial Details of the Deal
Host Hotels & Resorts made a deposit of $25 million to Hyatt. The sale reflects blended earnings before interest, tax, depreciation, and amortization (EBITDA) multiple of approximately 16x based on Hyatt's 2018 pro-forma estimates. Andaz Maui and Grand Hyatt San Francisco reflect a combined sale value of approximately $800 million and form part of Hyatt's ongoing $1.5 billion permanent sell-down program. The sale of these two properties reflects an EBITDA multiple of approximately 18x based on 2018 pro-forma estimates.
The 301-room Andaz Maui features a 15-acre beachfront setting, four infinity pools, 15,000 square feet of event space, five dining options, a spa and a fitness center. The Grand Hyatt San Francisco features 668 rooms, includes a 24-hour fitness center as well as restaurant, lounge, and event space.
The Hyatt Regency Coconut Point's sale for approximately $200 million, at an EBITDA multiple of approximately 12x based on 2018 pro-forma estimates, completes Hyatt's 2017 commitment to be a net seller of assets under its ongoing asset recycling program. Located in southwest Florida, the 454-room Hyatt Regency Coconut Point features several pools, waterslides, a golf course, rock climbing wall, five restaurants and over 82,500 square feet of flexible space.
With the completion of this transaction, Hyatt increased its 2018 guidance for return of capital to shareholders to a minimum of $500 million from the previous guidance of at least $300 million.
Agreement Supports Execution of Hyatt's Initiative to Reduce Real-Estate Ownership
Mark S. Hoplamazian, President and CEO of Hyatt, said that this agreement demonstrates the value of the Company's owned and leased hotels and strengthens its longstanding and valued business relationship with Host. Mark added that the completion of this transaction not only allows Hyatt to maintain its brand presence in these key markets with great brand representation, but also supports the execution of the Company's recently announced initiative to reduce real-estate ownership as part of broader capital strategy to unlock shareholder value.
Purchase is an Accretive Use of Capital that will Benefit Host's Stockholders in Long-Term
Commenting on the agreement, James F. Risoleo, President and CEO of Host Hotels & Resorts, stated that Andaz Maui, Grand Hyatt San Francisco, and Hyatt Regency Coconut Point are exactly the type of iconic real-estate it targets and are located in some of the best near-term growth markets in the US.
James added that given Host's recent and announced sales and its existing cash balance, this purchase is an accretive use of capital that will benefit stockholders in the long-term.
About Hyatt Hotels Corp.
Founded in 1957 and headquartered in Chicago, Illinois, Hyatt Hotels is a leading global hospitality company with a portfolio of 13 premier brands. The Company's subsidiaries develop, own, operate, manage, franchise, license, or provide services to hotels, resorts, branded residences and vacation ownership properties.
About Host Hotels & Resorts, Inc.
Established in 1993, Host Hotels & Resorts, Inc. is the largest lodging real estate investment trust and one of the largest owners of luxury and upper-upscale hotels. The Company owns or has interest in approximately 59,000 rooms around the globe. Headquartered in Bethesda, Maryland, Host partners with premium brands in the operation of properties in 50 major markets worldwide.
Stock Performance Snapshot
February 23, 2018 - At Friday's closing bell, Hyatt Hotels' stock fell 1.66%, ending the trading session at $79.94.
Volume traded for the day: 1.03 million shares, which was above the 3-month average volume of 837.76 thousand shares.
Stock performance in the last three-month – up 13.15%; previous six-month period – up 39.10%; past twelve-month period – up 55.95%; and year-to-date - up 8.70%
After last Friday's close, Hyatt Hotels' market cap was at $9.66 billion.
Price to Earnings (P/E) ratio was at 27.09.
The stock has a dividend yield of 0.75%.
The stock is part of the Services sector, categorized under the Lodging industry. This sector was up 1.4% at the end of the session.
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