Host Hotels & Resorts, Inc.  (HST) has sold the 1,780-key Sheraton New York Times Square Hotel to MCR and Island Capital for approximately $373 million, or about $210,000 per key. The buyers touted the deal as “one of the lowest prices per guestroom paid for fee simple hotel real estate in Manhattan over the past 13 years.” 

The sale represents a 28.0X multiple on 2019 EBITDA for HST. In connection with the sale, the Bethesda, MD-lodging REIT is providing a $250-million bridge loan to the buyers. 

James F. Risoleo, HST’s president and CEO, said, “The sale of the Sheraton New York Times Square Hotel represents another important step in the transformation of our portfolio as we look to deploy capital into assets that will bolster our EBITDA growth profile.” 

MCR and Island plan to invest $100 million in capital improvements at the property, which MCR will operate as a Sheraton. 

The post Host Hotels Trades Sheraton Times Square to MCR, Island Capital  appeared first on Connect CRE.

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