Strategic Hotels & Resorts announced on Monday that it has signed a contract to purchase the 291-room Four Seasons in Austin for $197 million. The company anticipates the transaction will close in the next couple of weeks.
“As we have long stated, expanding our geographic diversity is a strategic priority,” said CEO Raymond “Rip” Gellein during the company’s first quarter 2015 earnings call. “This acquisition not only achieves that, but adds yet another distinctive, high-performing property to our portfolio.”
According to Gellein, the hotel is forecast to earn $15.4 million of EBITDA and $13.2 million of NOI in 2015, which implies a 12.8x EBITDA multiple and a 6.7 percent cap rate on Strategic’s acquisition price.
This marks the third deal this year for Strategic. The company, along with its joint-venture partner, recently signed an agreement to sell the Hyatt Regency La Jolla for $118 million, and in January it acquired the Montage Laguna Beach from an affiliate of Ohana Real Estate Investors for $360 million.
Read more over at Statesman.
