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Thursday, 08 August 2019

Host Hotels Selling 5 Properties for $370Mln

The Bethesda, Md., REIT has agreed to sell five properties with 1,591 rooms in Arizona, California, Georgia and Indiana for $370 million. The buyers were not disclosed. The deals, which are expected to close by the end of next month, will continue the company's plan to sell assets that have lower revenue per available room than its portfolio average and require significant capital expenditures.

Commercial Real Estate Direct Staff Report

Host Hotels & Resorts Inc. has agreed to sell five properties with 1,591 rooms in Arizona, California, Georgia and Indiana for $370 million. The buyers were not disclosed.

The deals, which are expected to close by the end of next month, will continue the Bethesda, Md., REIT's plan to sell assets that have lower revenue per available room, or RevPAR, than its portfolio average and require significant capital expenditures. So far this year, Host has sold seven properties with 2,800 rooms in California, Illinois, New York and Virginia for $609 million. It owns 87 hotels with 49,762 rooms.

The REIT said the sales prices of the completed and pending transactions will result in a capitalization rate of 5.7 percent. Those properties have an average RevPAR of $136 compared with the portfolio average of $200.53.

Michael Bluhm, the company's chief financial officer, told analysts on a conference call this week that hotel owners typically have been able to secure financing for 75 percent of a property's value at historically low rates. That has led to buyers paying more for properties due to a diminished supply of assets on the market as owners choose to refinance rather than sell.

"The financing markets remain white hot," Bluhm said. "It really has given us the ability to drive pricing."

The five properties Host is selling are:

- Marriott Suites Old Town, with...





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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