BETHESDA, MD— Host Marriott Corp. has acquired the 1,139-room Boston Marriott Copley Place, located in the famous Back Bay district of Boston, for $214 million, or $188,000 per room. The purchase price includes the assumption of $97 million of debt, with an interest rate of 8.39% and a maturity date in 2006. In 2001, EBITDA was $23.5 million. Christopher Nassetta, president/CEO, stated, “The Boston market has been particularly soft during the last year, with the hotels cash flow down approximately 35% from 2000 levels. As a result, we believe there is meaningful upside potential over the next several years as the Boston market recovers and as we implement our asset management strategies.” The Boston Marriott Copley Place, which opened in 1984, has held an average occupancy of 85% over the past five years. The hotel also boasts the largest hotel ballroom in New England and offers more than a total of 60,000 square feet of flexible meeting space. The hotels lobby opens to the upscale Copley Place Shopping Galleries and the Prudential Center, with over 200 upscale shops and restaurants with over 17,000 visitors each day. With this acquisition, Host Marriott now owns nine hotels with at least 1,000 rooms. “Given our purchase price represents a 35% discount to replacement cost, we are confident this asset will create long term value for our shareholders,” stated James Risoleo, evp/acquisitions and development.
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