Host Hotels Buys Key Bridge Marriott Ground Lease, Considers Redevelopment
The Bethesda-based REIT acquired the site's ground lease for $54M, GlobeSt reports.
The hotel has been in Host's portfolio since it was built 56 years ago, but only as a land lease. Now that the REIT owns the ground lease, for which it spent 10 years negotiating, it has the freedom to demolish the building and redevelop the entire site. This is one of several options Host is considering. Its valuable location on the Potomac River with views of the monuments provides Host with high upside for redevelopment.
To pay for the acquisition, Host sold off five non-core hotels totaling $345M, adding to the more than $1B of non-core assets it has sold in the last year. Host Hotels CEO Ed Walter is keynoting Bisnow's Lodging and Investment Series in DC next month. [GS]