Host Hotels Acquires Brooklyn, Plano Hotels for $374M
The deal brings the firm's total portfolio to more than 41,000 rooms.
Image by TravelMedia/Adobe Stock
Host Hotels & Resorts Inc. has acquired interests in two luxury hotels, one in Brooklyn and the other in Plano, Texas, for a total of $374 million, in cash.
The real estate investment trust spent $202 million on the leasehold interest in the 195-key 1 Hotel Brooklyn Bridge from Starwood Capital Partners. Host Hotels used the remaining $172 million to acquire the fee-simple interest in the 308-key Renaissance Dallas at Plano Legacy West Hotel from Paceline Equity Partners and Aravest, according to The Business Journal.
Following the two transactions, Host Hotels’ portfolio has expanded to 72 U.S. properties and five international ones, totalling approximately 41,800 rooms. Alongside them, the firm has noncontrolling interests in seven U.S. joint ventures.
Two luxury hotels in Brooklyn and Plano
The Brooklyn asset has 83 years remaining on its ground lease. Completed in 2017 by Starwood Capital Partners and Toll Brothers, 1 Hotel Brooklyn Bridge features 29 suites, 12,000 square feet of meeting space, a wellness spa with ten treatment rooms, underground parking, a fitness center and a rooftop pool. The property is at 60 Furman St., just off the Brooklyn Bridge, some 2.4 miles from Manhattan’s Financial District.
Developed by Sam Moon Group, the Renaissance Plano also came online in 2017 as the only hotel within the 240-acre mixed-use Legacy West development, which features office, retail and residential space. The property stands at 6007 Legacy Drive, just off the Dallas North tollway and close to the interchange with Sam Rayburn tollway. Downtown Plano is 14 miles southeast. The Renaissance Plano rises 15 stories and features 16 suites, 35,000 square feet of meeting space, an outdoor pool, a fitness center and a parking garage.
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Hospitality investment activity across New York City continues to benefit from limited land availability and stricter short-term rental regulations, according to a report by Marcus & Millichap. Last year, the average sale price per room rose 40 percent compared to the figures recorded three years prior. Luxury and full-service hotels are expected to surpass 2025’s metrics, with Brooklyn and Queens as the boroughs with the strongest demand growth.
Meanwhile, transaction activity across the sector in Dallas-Fort Worth saw moderate growth, the same report points out. Dallas accounted for approximately 25 percent of transactions, with Plano trailing behind it at 12 percent. In these two markets, corporate relocations and business travel have been and are expected to continue being the main drivers for investor interest.
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