Host Hotels & Resorts has completed the purchase of 1 Hotel Brooklyn Bridge for a total of $202 million, according to a company announcement made on Wednesday.
The 194-room property, located at 60 Furman Street in Brooklyn, was previously owned by Starwood Capital Group and Invesco. The acquisition price equates to approximately $1.04 million per room.
Details of the Transaction
The 10-story hotel, which opened in 2017, is situated along the Brooklyn waterfront adjacent to Brooklyn Bridge Park. Host Hotels stated that the property is expected to generate a stabilized net operating income yield of 8% to 8.5%.
According to Host Hotels, the purchase was funded using available cash. The company also noted that the acquisition aligns with its strategy to expand its portfolio of luxury and upper-upscale hotels in urban markets.
Property Features and Performance
1 Hotel Brooklyn Bridge features 194 guest rooms, including 29 suites, as well as 10,000 square feet of indoor and outdoor event space. The hotel offers views of the Manhattan skyline and the Brooklyn Bridge. Additional amenities include a rooftop pool, a spa, and multiple dining options.
Host Hotels reported that the property achieved an average occupancy rate of 80% and an average daily rate of $500 in 2023. The company expects the hotel to benefit from its location and the continued growth of Brooklyn as a travel destination.
Strategic Importance
James F. Risoleo, President and CEO of Host Hotels & Resorts, stated, “The acquisition of 1 Hotel Brooklyn Bridge is consistent with our strategy of investing in high-quality assets in desirable markets.” He added that the hotel’s sustainability features and strong operating performance made it an attractive addition to the company’s portfolio.
The acquisition increases Host Hotels’ presence in New York City, where it already owns several properties, including the New York Marriott Marquis and the Ritz-Carlton New York, Central Park.
Further Information
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