Host Hotels & Resorts Inc. closed its deal to sell its 33% interest in its European joint venture to its partners for net proceeds of €435 million, after factoring in fund level of debt.
The Bethesda, Md.-based lodging real estate investment trust's interest has a gross value of roughly €700 million and reflects an EBITDA multiple of 17x on the company's forecast 2018 results.
The company will now refocus on the U.S., holding only two hotels in Canada and three in Brazil, President and CEO James Risoleo said in a release. Host Hotels expects these non-U.S. hotels to contribute less than 2% of its EBITDA.
Host Hotels will use part of the proceeds to repay roughly €207 million drawn on its credit facility.