Host Hotels has significantly expanded its footprint in New York City by acquiring the 1 Hotel Central Park at 1414 6th Ave for approximately $265 million. This acquisition reflects an 11.1x EBITDA multiple and a cap rate of about 8.1% based on the property's projected 2024 performance.
The 234-room luxury hotel, which includes 25 suites and a five-key penthouse, features a variety of amenities. These include a 2,000 square-foot meeting space, a fitness center, a business area, and a lobby-level restaurant and bar associated with renowned chefs James Beard and Jonathan Waxman. Located just a block from Central Park and the luxury shopping district, the hotel is expected to become one of Host's top ten assets, with anticipated revenue per available room (RevPar) reaching $545 by the end of 2024 and EBITDA per key exceeding $100,000.
This latest acquisition bolsters Host's New York portfolio, which already includes the New York Marriott Marquis and New York Marriott Downtown. Despite a slowdown in RevPar growth across the industry in Q2, Host's president and CEO, James F. Risoleo, emphasized New York City's strong performance in this category. He noted that the 1 Hotel Central Park will enhance Host's exposure to the luxury market in Upper Manhattan, the city's top RevPar submarket.
"This high-performing hotel will provide exposure to the luxury guest in Upper Manhattan, the top RevPar submarket in the city," Risoleo said. "This is our third 1 Hotel acquisition, after Nashville and South Beach, and we look forward to continuing our strong partnership with the sustainable luxury brand."
Additionally, Host recently completed the purchase of the Ritz-Carlton O'ahu, Turtle Bay in Hawaii for approximately $680 million, further expanding its portfolio with this 450-room property. In total, Host has acquired $1.5 billion worth of hotels in 2024, reflecting a blended 13.6x EBITDA multiple. The REIT now owns 76 properties across the United States, with no near-term capital expenditures planned, aiming to create more value for its shareholders through strategic acquisitions.
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